VietNamNet Bridge – Viet Nam's economy was on the right track to recovery, with inflation no longer a great concern, according to Minister of Planning and Investment Bui Quang Vinh. He was speaking at the regular cabinet meeting in Ha Noi yesterday, June 27, to review the country's socio-economic status during the first half of the year. His statement was backed up with positive readings of the main macro-economic indicators released by the General Statistics Office (GSO) yesterday. The nation's gross domestic product grew 4.9 per cent year-on-year in the half past of this year. The growth rate means Viet Nam has expanded at a slower pace compared to the same period last year, but growth was on an upward trend on a quarterly basis. The Consumer Price Index (CPI), which broadly reflects inflation, had either fallen or increased slightly since March, after rising for seven consecutive months. The CPI in June increased just 2.4 point compared to December, the lowest rise in the … [Read more...]
Economy brightens for southern hub
The meeting of the HCM city People's Council.—VNA/VNS Photo HCM CITY (VNS)— The economy of HCM City has been recovering despite many challenges it faced, a senior official said yesterday at a meeting of the city People's Council. Hua Ngoc Thuan, deputy chairman of the HCM City People's Committee, said the city's GDP had reached VND340.6 trillion (US$16.2 billion) in the first six months of the year, a growth of 7.9 per cent year-on-year. Export turnover was $13.7 million and import turnover was $12.7 million during that period. HCM City's State Budget intake was VND107.6 trillion ($5.1 billion) during the first six months, reaching 45 per cent of the year's target. In terms of investment, as of June 20, there were 12,333 new local enterprises, with total registered capital of more than VND57 billion ($2.7 million). At least 187 new foreign direct investment projects were granted investment licenses, according to HCM City's People's Committee. "The economy of HCM … [Read more...]
Public investment stimulus will revive national economy
Public investment will soon increase to stimulate economic growth, National Assembly Economic Committee member Tran Hoang Ngan told Thoi bao Kinh Te Viet Nam (Viet Nam Economic Times) Newspaper. In February 2011, the government floated the idea of cutting back on public investment. After more than two years, the idea has turned sour and now the government wants to retrace its steps and increase public investment. What's your comment on the Government making such a U turn? The measures adopted by the government in early 2011 to control the inflation and stabilise the country's macro economy were highly praised by domestic and overseas experts . One of the measures was to reduce public investment. However, in the current economic context - a lot of money is lying idle in credit organisations, including banks and the strong drop in the consumer price index (CPI) over the past two years. I think the government's decision to increase public investment is a wise decision. In addition, total … [Read more...]
Experts urge caution over economy controls
According to analysts, Viet Nam is likely to record an economic growth rate of 5.1 – 5.2 per cent this year, lower than the 5.5 per cent target.—Photo sgtt HA NOI (Biz Hub)— Economic experts have warned that Viet Nam's macro-economy must be controlled with caution as the country faces an uphill task to achieve economic growth of 5.5 per cent in the context of tough economic conditions both globally and domestically. In late June, General Statistics Office general director Do Thuc reported positive signs in the national economy in the January-June period, with GDP growth registering a quarter-on-quarter increase, while the consumer price index inched up a mere 2.4 per cent against December 2012, laying a solid foundation to keep inflation below 8 per cent this year. The trade deficit stood at US$1.4 billion, equivalent to 2.3 per cent of exports. The head of the Industrial Statistics Department, Pham Hong Thuy, said although the industrial production index rose by … [Read more...]
Central bank policies aim to revive economy
VietNamNet Bridge – Late June, the State Bank of Viet Nam took two important decisions aimed at stirring up the economy market and improving aggregate demand. However, these new policies cannot promise much, given that similar moves have not made much of a difference in the past, and that they do not address other factors behind the current economic malaise. One of the decisions was to increase the dong-US dollar exchange rate by one per cent to 21,036 from VND20,828. The central bank also decided to cut the dong deposit rate cap to 7 per cent from 7.5 per cent and dollar cap for individuals to 1.25 per cent from 2 per cent. Accordingly, short-term lending rates for prioritised sectors including agriculture, exports, supporting industries, hi-tech businesses and small and medium enterprises (SMEs) will be cut from 10 to 9 per cent. The central bank's moves are not so surprising that they can shock the market. They are expected to be a "lever" to lift demand and partly settle … [Read more...]
Marine resources vital for economy
Nguyen Thanh Tung, director of the Institute of Fisheries and Economic Planning at the Directorate of Fisheries, speaks to the Kinh Te Viet Nam va The gioi (Viet Nam & World Economy) newspaper. It is true to say that aquaculture plays a vital role in the nation's economy. How do you rate its contribution to the country's economic development? The volume of aquatic products exceeds 2 million tonnes each year and the country's 3,260-km coastline from north to south has created many coastal ecosystems. These include numerous lagoons, salt-lakes and mangrove forests. These large aquaculture zones contribute greatly to economic development, as well as improving the lives of the local people on the islands and in coastal areas. At present, many coastal localities are focusing on expanding their aquaculture operations, including rearing seafood. Can you tell more about this? Currently, many coastal areas in provinces such as Kien Giang, Khanh Hoa, Phu Yen, Hai Phong, Quang Ninh and Nghe … [Read more...]
New path towards a socialist-oriented market economy
The core economic philosophy expressed in the documents adopted by the 11th National Congress of the Communist Party of Viet Nam is that the economy must be restructured and the model of growth shifted in order to ensure rapid but sustainable development. Three strategic breakthroughs are a precondition to implementing this philosophy, with the accomplishment of institutions necessary for a socialist-oriented market economy the key breakthrough that directly affects the process of shifting the model of growth. Doing so does not necessarily require an enormous investment of financial resources and therefore could be accomplished in a rather short time with determination and the proper understanding. After more than 20 years of pursuing the policy of doi moi (renewal), our country has recorded important achievements in building the institutions of a socialist-oriented market economy. Thanks to these achievements, we have been able to mobilise various resources for … [Read more...]
Viet Nam makes list of hottest economies
View of HCM City - the country's largest economic hub. HSBC forecast the country's gross domestic product (GDP) would grow by 5.7 per cent this year. — VNA/VNS Photo Trong Duc HA NOI — The World in 2050, a research publication issued by the Hongkong and Shanghai Banking Corp (HSBC) earlier this month, ranks Viet Nam among 26 fast-growth economies in the world. These economies are still at a very low level of development but have made great progress in improving fundamentals, it says. As they open themselves to the technologies available elsewhere, they should enjoy many years of "copy and paste" growth ahead, the study forecasts. This group includes China, India, the Philippines, Malaysia, Bangladesh, Uzbekistan, Kazakhstan, Turkmenistan, Egypt, Jordan, Peru, and Ecuador. The study divides the Top 100 economies into three categories: fast growth – with an expected annual growth rate of more than 5 per cent; growth (between 3 and 5 per cent); and stable (less than 3 … [Read more...]
Get tough on economy: experts
A Vietnamese financial expert has predicted an economically gloomier year for 2012 as the recession bottomed out. "Stronger measures must be taken to restructure the economy," director of the Vietnam Institute of Economics, Tran Dinh Thien, told a conference held by the National Financial Supervisory Committee on Jan 9. "The world is on eve of a financial crisis and this has revealed the instabilities of Vietnam in the global economy. It will be a very hard year for Vietnam and the recession will reach its bottom." Thien said the nation entered the year with a more fragile economic base following the economic downtrend, high inflation and the trade and State budget deficits that took root many years ago. He added that stagnation combined with high inflation poses a great danger to the economy that worries economists about a trade-off between growth and stability. If the Government prioritises curbing inflation, economic stagnation will grow worse, and if focus is put on curing economic … [Read more...]
HCM City resolves to revamp economy
Customers shop at a Co.op Mart in HCM City's Cu Chi District. The city is aiming to lower its consumer price index to below the national level in 2012. Last year, inflation in the city doubled to nearly 16 per cent. — VNA/VNS Photo Thanh Vu HCM CITY — City authorities this year will focus on restructuring economy and lowering the CPI (consumer price index) below the national level. In 2011, the city was unable to reach four of its 22 targets on the economy, society and environment. The city's GDP (gross domestic product) grew 10.3 per cent, although it had been targeted to reach 12 per cent, and the CPI doubled, to nearly 16 per cent. In 2012, socio-economic figures have been readjusted to reflect the new situation. Revised targets include the GDP to grow 10 per cent; export turnover to reach 15 per cent; total investment of society to rise to VND215 trillion (US$10 billion) or one-third of GDP; State budget to reach VND234 trillion; total spending from the State budget … [Read more...]