|
ASEAN
|
2004-01-04 18:22:36-05
|
Vietnam's Economic Growth Accelerates
|
|
As country makes switch from agriculture to industry, growth surges but difficulties persist
|
Vietnam posted a gross domestic product increase of 7.2 percent last year, the figure is an increase from 7 percent in 2002 and is the fastest since 8.2 percent in 1997. The growth is the fastest in Southeast Asia but it still trails China, South Korea, Taiwan and Thailand when they were at similar stages of development. For example, Guangdong Province in China had a growth rate of 25 percent when it made the transition from agricultural to industrial. Vietnam's growth is underpinned by the industrial and construction sectors which account for 40 percent of the economy. The service industry makes up 38 percent of the economy and it grew 6.6 percent in 2003, about the same as the previous year. Agriculture, forestry and fisheries, which account for the remaining 22 percent of the economy actually expanded only 3.2 percent, down from 4.1 percent in 2002. Vietnam's economic expansion was led by exports of apparel to the United States which increased more than three times in the first 10 months of 2003 compared to the same period in 2002. Vietnam has denied a complaint that it is selling shrimp in the United States at below cost, by stating that US producers are not competitive. An American trade group filed a complaint with the Commerce Department and the US International Trade Commission last week. It is also locked in a battle over the export of catfish to the United States. American domestic producers allege that Vietnam is dumping catfish on the US market at below production cost. The Americans also maintain that the Vietnamese 'catfish' are not even true catfish but another species, altogether. Looking ahead, Vietnam's economic progress in the coming year and beyond will largely rest on its ability to attract foreign investment. This situation puts its in the same boat as other ASEAN countries. They will have to go head-to-head with China in attracting increased amounts of foreign direct investment.
|
