Vietnam can hardly face an economic recession as its economy has benefited greatly from foreign-invested projects, UNCTAD Secretary General Supachai Panitchpakdi said.

Speaking on the sidelines of the second Vietnam Economic Forum (VFF), Supachai predicted a FDI flow will continue going into Vietnam once the country maintains its fundamental economic elements.

He cited the commitment of 23 billion USD in foreign direct investment (FDI) in 2007 and the pledge of 47 billion USD in FDI in the past eight months for Vietnam to support his prediction.

Supachai, who used to be Deputy Prime Minister of Thailand , forecast that Vietnam may post a GDP growth rate of 6 percent this year. If Vietnam can retain the 6 percent growth rate in 2009, it will be a great success, he said.

According to the UNCTAD official, a lower economic growth rate will not affect Vietnam’s achievements that it recorded over the past years. However, Vietnam needs to reinforce fundamental foundations for the national economy, including stabilising the marco-economy.

He commented that exports to traditional markets, including the EU and the US have largely contributed to Vietnam’s economic growth, but the country should seek new markets in order to boost its exports.

Regarding the implementation of a tight monetary policy, Supachai said that this policy should be implemented in parallel with other policies, including a policy to help raise income for the people.

The UNCTAD Secretary General called on Vietnam and other regional countries to promote South-South trade ties and make more efforts to boost financial cooperation in order to drive back difficulties stemming from the ongoing global crisis.

Source: VNA