Vietnam’s economy sees signs of steady growth

22:15 21/05/2018
The national economy is displaying signs of stable growth, according to a government report presented by Deputy Prime Minister Truong Hoa Binh at the 14th-tenure National Assembly’s fifth session, which opened in Hanoi on May 21.

The report focused supplementary assessment of Vietnam’s socio-economic performance so far this year and major tasks and solutions for the time to come.

The Government will closely follow the domestic and international situations so as make suitable and timely reactions, while taking heed to dealing with newly emerging issues, existing shortcomings and weaknesses.

It will double  efforts to fulfill all targets set for this year towards ensuring sustainable development in the following years, thus contributing to the successful implementation of the five-year plan from 2016-2020.

To maintain the macro-economic stability, keep inflation in check and spur economic growth, the Deputy PM stressed that the Government will maintain the effective and synchronous implementation of monetary and financial policies.

So far this year, Vietnam has achieved a growth rate of 6.81%, an export growth of 21%, and an export surplus of US$2.9 billion. Its macro-economy has continued to stay stable and inflation was kept at 1.34%. The flexible monetary policy has ensured liquidity and safety for the whole system. Interest and exchange rates and the forex market were all stable. The capacity, scale, and network of credit organizations have been strengthened and the State’s foreign reserves hit US$63.5 billion.

Vietnam’s GDP reached the ten-year highest rate of 7.38%. Agriculture increased by 4.05%, industry and construction 9.7%, processing and manufacturing 13.56% and services 6.7%. The yield of industrial and construction material production increased sharply over last year. Exports hit US$74 billion over the past four months, up 10%. The country has tighten controls on border trade and carried out a score of measures in line with international commitments, Binh said.

vietnam’s economy sees signs of steady growth hinh 1
 Deputy Prime Minister Truong Hoa Binh

The government report showed Vietnam’s improve investment environment administrative reform. The average Provincial Competitiveness Index reached the highest rate since 2005. The government and localities have revamped mechanisms and adjusted regulations on investment, construction, land, and the environment. Over the past four month saw more than 41,000 new enterprises established and 11,000 enterprises resumed operation. Newly-registered capital totaled in excess of US$51 billion.

Since early this year, with the motto “discipline, righteousness, action, creativity, and effectiveness”, ministries, sectors and localities have been working their own growth scenarios. The government has worked harder to harmonize its monetary and fiscal policies, stabilize the macro-economy, and rein in the Consumer Price Index at 4% and achieve a growth rate of 6.7% this year.

Deputy Prime Minister Truong Hoa Binh underlined the need to realize the government resolution on solutions to boost export, trade, and market expansion, and simplify administrative procedures.

“We need to take trade remedy measures, strengthen the management of import, improve trade deficits with partners, and achieve sustainable exports. It is imperative to develop a coordinated and effective distribution network to bring goods to rural, mountain, and remote areas,” Binh emphasized.

The government will implement resolutions on creating strategic breakthroughs, economic restructuring, and growth model reform. It will also diligently practice thrift, diversify products, increase productivity, and promote brand advertisement to achieve a growth rate of 7.7% in the industrial and construction sectors.

Regarding opportunities and challenges for Vietnam presented by the regional and world situation, the Deputy PM said that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will give positive effects while international organizations forecast the Vietnamese economy will continue seeing positive growth in the time ahead.