Determined to deploy the measures specified in the Resolution No. 01/NQ-CP and the 02/NQ-CP, Vietnam has achieved positive economic results and continued to go on the right direction. Significant economic recovery The Ministry of Planning and Investment noted that the economy was on the right track in the reviewed period. The gross domestic product (GDP) expanded 5 percent in the second quarter compared to 4.76 percent in the first quarter, bringing the six-month growth to 4.9 percent.
Inflation continues to be contained as prices were kept stable. Consumer price index (CPI) in June edged just 0.05 percent over May and rose 6.69 percent over June 2012. CPI climbed 2.4 percent in the first six month. Slight price rise was good for consumers.
Export maintained a double-digit growth. The country earned over US$10 billion from exports in June, totalling US$62.1 billion in the first six months, up 16.1 percent year on year. Specifically, foreign-led sector bagged US$37.4 billion (excluding crude oil), accounting for more than 60.2 percent of total exports, up 28.3 percent year on year.
Trade deficit was US$1.4 billion in the first six months, or 2.3 percent of total exports – a low and controllable amount. Foreign-invested sector enjoyed a trade surplus of US$1.65 billion (excluding crude oil) and US$5.4 billion (including crude oil).
Despite a lot of difficulties, industrial production started to improve and inventories declined. The index of industrial production (IIP) rose by 5.2 percent year on year in the first six months. Specifically, mining industry enlarged 1.9 percent, processing and manufacturing expanded 5.7 percent (5.9 percent a year ago), electricity and gas production and distribution increased 8.7 percent (14.7 percent a year ago), and water supply and wastewater treatment augmented 9.6 percent.
Total social investment capital was estimated at VND448.6 trillion in the first six months of 2013, fulfilling 43.9 percent of the full-year plan. Foreign investors were projected to disburse VND114.3 trillion (US$5.5 billion) in the six-month period, or 53.4 percent of the full-year plan. They registered to invest US$10.47 billion, up 15.86 percent from a year earlier.
Tax breaks and exemptions helped businesses to better respond to difficulties. Banking liquidity continued to be improved and forex market was kept stable. In the first six months of 2013, the State Bank of Vietnam (SBV) reduced both regulatory deposit and lending interest rates, helping improve the system liquidity. Credit regained growth momentum after a slight decline in January.
However, exchange rate tended to rise slightly. Forex market was relatively stable. The central bank continued to buy foreign currencies to increase forex reserves to 12 weeks of imports. Gold trading was gradually stabilised.
Pressures in the last six months
The Ministry of Planning and Investment said macro-economy recovered but not actually sustained. Inflation has been curbed but it may jump high again. Interest rates have been cut down but access to bank loans remains hard on bad debt strains and slowing credit growth. Purchasing power is slowly progressing. Total development investment remained small while State Budget revenue fell short of the plan and declined from previous years. Livelihoods of the people, especially the poor, jobless people, ethnic minorities, and people living in mountainous and remote areas, are difficult.
Corporate bankruptcies have increased month by month. The country saw 8,300 companies ending operations in the first four months, 8,800 companies in the five months and 9,300 companies in the first six months.
Besides, considerable declines of global prices plus shrinking worldwide demand will directly affect Vietnam’s production and exportation. Vietnam needs to closely control input prices in order to stabilise market prices, especially of essential goods, in the last six months of the year.
Huong Ly
Đăng ký: VietNam News