Vietnam - Economic growth turns positive

The socio-economic performance has recorded positive movements, signalled by bright signs like declining lending interest rate, stable exchange rate, higher foreign currency reserve and lower inventory level.

This is part of the latest report that the Ministry of Planning and Investment (MPI) presented at a working session of the National Assembly’s Economic Committee on October 10.

The report admitted that five out of 15 norms determined by the NA would not be fulfilled in 2012, including GDP growth rate, social investment capital, job generation, poverty reduction and forest coverage. The other ten norms are expected to outstrip the preset targets.

According to the report, GDP growth rate is estimated at 5.2 per cent in 2012, lower than the set target of 6-6.5 per cent after amounting to 5.89 per cent in late 2011. This is the second consecutive years GDP fails to meet the National Assembly’s target.

Higher growth rate and lower inflation rate for 2013

The MPI proposed key norms for 2013 including a GDP growth rate of 5.5 per cent ; an inflation rate of 7-8 per cent; an export turnover of $124.3 billion; a trade deficit of 8 per cent; a budget overspending of below 4.8 per cent of GDP and investment capital sourced from society accounting for around 30 per cent of GDP.

In the report, the MPI proposed the enforcement of a tight and cautious monetary policy in which credit interests would be reduced in line with inflation rate and credit growth would be maintained for enterprises to access to capital.

The banking system should be put under tighter control. More powerful sanctions should be applied to frauds, non-transparency and provision of distorted information on credit activities.

VGP

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