Vietnam's economy could be at risk if nothing is done quickly to fix its pension system, the World Bank has pointed out after conducting two years of research. The country may encounter an imbalance between collection and spending of the fund in the future, when the number of old people receiving welfare payments is higher than those of working age who are contributing to the fund, said Ousmane Dione, the World Bank's country director for Vietnam. According to the report, Vietnam’s pension fund will run out by 2030, and the deficit will account for 2.5-3 percent of the country’s gross domestic products (GDP) in 2060-2070, Dione told a meeting with Deputy Prime Minister Vuong Dinh Hue in Hanoi on Thursday. He went on to say that Vietnam’s pension fund is facing an aging population, and that pension payments are higher than what workers contribute to the fund via their montly salaries. The bank suggested that Vietnam should raise its pension payments in accordance with … [Read more...] about Vietnam needs to act now to save pension fund or economy could be at risk: World Bank
Economy
Coastal economic zones strive for low-carbon economy
VietNamNet Bridge - Renovating technology, reducing greenhouse gas emissions and developing a low-carbon economy are methods being used by coastal EZs in the new development period. Coastal EZs are striving for low-carbon economy The Vietnam Marine Strategy, released by the Party Central Committee in 2007, says that coastal EZs will make up 53-55 percent of the country's total GDP. Emissions increase Huge investment projects include Dung Quat Oil Refinery and the Doosan Vietnam heavy industry complex in Dung Quat EZ, the Chu Lai – Truong Hai automobile – mechanical engineering complex in Chu Lai Open EZ, and the cement and thermopower plants in Nghi Son EZ. According to the Coastal EZ Management Board, the total CO2 emissions from industrial and agricultural production and services in coastal economic zones in 2010 was 7.42 million tons, or 4.06 tons of CO2 per head. The emissions were mostly from thermal power plants. RELATED NEWS VN yet to sow seeds of low … [Read more...] about Coastal economic zones strive for low-carbon economy
Vietnam economy grows at best rate in a decade
Vietnam's economy saw its strongest first-quarter growth in a decade, data showed on Thursday (Mar 29), driven by a surge in electronics manufacturing and exports. While agriculture and wholesale and retail trade have seen steady rises, manufacturing remains a the pillar of Vietnam's growth. (Photo: AFP/Hoang Dinh Nam) The reading comes as the communist country is poised to expand its overseas markets after signing an 11-nation Asia-Pacific trade deal this month that replaces the Trans-Pacific Partnership (TPP), scrapped by the US last year. Observers said a spike in exports was a promising sign that Vietnam's market has not been dented by US President Donald Trump's protectionist agenda. The 7.38 per cent GDP expansion in January-March was sharply up from the rate of just over five per cent seen in the same period last year, according to the Government Statistics Office, and well above the government's annual target of 6.7 per cent. The figures are the best since a 7.40 per … [Read more...] about Vietnam economy grows at best rate in a decade
ICAEW: Moderate growth forecast of 5 per cent for ASEAN economies
Economic growth in Southeast Asia is expected to be moderate this year, as it is unlikely to match the exceptional momentum in 2017, according to ICAEW’s latest Economic Insight: Southeast Asia report. For ASEAN, growth is forecast to come in at 5 per cent, underpinned by drivers like private sector investment and domestic demand. Southeast Asia's economic growth will be moderate this year Given the large export-orientated manufacturing base of most Asian economies, the recent resurgence in global trade has largely benefitted the region in 2017. With firms ramping up production and investment to accommodate rising external demand, import growth has nonetheless accelerated over the last 12 months, making net exports' contribution to growth insignificant. Instead, exports' most important contribution to growth is their indirect impact on domestic demand through spill-over on investment and consumption. At the aggregate level, most open economies in Asia have … [Read more...] about ICAEW: Moderate growth forecast of 5 per cent for ASEAN economies
Tourism billed as driving force for APEC economies
(VEN) - Senior officials from the 21-nation Asia-Pacific Economic Cooperation (APEC) forum, meeting on June 19 in the northeastern province of Quang Ninh, adopted a joint declaration on boosting sustainable tourism. Twenty-one APEC members participated in the APEC High Level Policy Dialogue on Sustainable Tourism held in June Facilitating travel within APEC The declaration emphasizes the important role of tourism in stimulating economic growth, promoting economic integration and regional connectivity. It also highlights the importance of sustainable tourism as a driving force for inclusive, innovative and sustainable growth. The declaration notes that the Asia-Pacific region is undergoing a critical transition in the context of global changes, and especially the dramatic transformations wrought by the digital era and the Industrial Revolution 4.0. It underscores the need to promote public-private partnerships as a key measure for the development of sustainable tourism … [Read more...] about Tourism billed as driving force for APEC economies