Gdp Vietnam’s

Vietnam’s inflation decreased from 23% in 2011 to just 7.3% by July of 2013 and posted an inflation rate of 6% in December. HSBC said, “we expect inflation to accelerate slightly in 2014 due to higher energy and food prices..." It predicted that inflation would accelerate in 2014 to 7.9% (average). This improved inflation rate is the lowest level in the past 10 years, the government said at the end of the year to the paper. Bui Quang Vinh, minister of planning and investment, said the 5.4% growth in this figure was reasonable considering the government's priority to contain inflation

GDP

Despite the positive outlook, Vietnam’s GDP growth has declined over the past few years - in the second quarter of 2013, the country saw a growth rate of 5%. It is predicted that the country will see a GDP growth of closer to 5.3% for the entire year.

In 2013, Vietnam faced a 10.5% increase in the number of businesses that were reported to have to either close, liquidate or temporarily suspend their operations. The government started to cut interest rates and reduce tax rates, among other steps to solve the problem.

Source: Tuan, N.A. (2012). "A Case Study on Power Sector Restructuring in Vietnam". Pacific Energy Summit. 2012 Summit Papers.

- Shortage of land area for developing the steel projects around HCM City area: The Industrial Zones in Tan Thanh District, Ba Ria - Vung Tau province now is limited of land area. It is so difficult to find a land remaining with around several hectares, a limit area for setting up a steel factory.

Other industrial parks will not have the most advantages of Phu My I and II, My Xuan A and B Industrial parks in Ba Ria-Vung Tau Province, such as, convenient position for river and inland transportation, is located in the ex-import hub by means of the most dynamic sea-port system of Vietnam.