VINACHEM

The National Financial Supervisory Committee (NFSC) also forecasts an overall increase in private consumption for 2014.

According to official statistics, retail consumption of goods and services rose by 5.8% in January, or 0.2% higher than the growth a year earlier.

NFSC economists also predict total social investment capital may reach 30% of GDP as a result of the expanded credit capacity and other benefits flowing from the restructuring of the banking system and banks getting non-performing loans off their books.

Meanwhile, foreign investment is expected to show marked improvement thanks to positive prospects of the world economy and the signing of the Trans-Pacific Partnership (TPP) agreement due in 2015.

However, targets for stabilising the macro-economy and monetary and fiscal policies must be managed diligently this year as business access to credit will continue to face limitations and all-in-all non-performing loans remain relatively high.

The NFSC reports that although the number of newly-established businesses rose in 2013, the overall scale of business in terms of total assets, equity and turnover declined.

In the first nine months of last year, total assets dropped by 5.2% against the same period a year earlier, average equity dipped 3.97% and average turnover rose modestly by 3.11%.

Obtaining the set target of 5.8% economic growth for 2014 requires a conscientious and concerted effort from the whole society and business community, the report concludes.