An automobile spare part production chain in Vietnam (Illustrative image. Source: VNA) Hanoi (VNA) – Financial institutionsand research organisations at home and abroad have shown their optimism aboutVietnam’s economic growth in the second half of 2018 and the whole year.
The International Monetary Fund (IMF) has projectedVietnam’s economy to grow by 6.6 percent in 2018 and the inflation rate to be keptunder 4 percent thanks to the country’s economic reform and its Government’scommitment to stabilise the macro economy.
The Asian Development Bank (ADB) also forecast theeconomy will expand by 7.1 percent this year, while the World Bank (WB) raisedits forecast for Vietnam’s economic growth to 6.8 percent.
The Central Institute for Economic Management(CIEM) was optimistic that Vietnam’s growth can reach 6.71 percent instead of6.67 percent as previously predicted.
Macroeconomic indicators are bright, such as theyearly export growth is projected at 12.11 percent, trade surplus 1.2 billionUSD, and average inflation 3.93 percent.
The momentum for economic growth has beenmaintained, not based on the monetary expansion but associated with changes inbusiness environment.
The gross domestic product (GDP) expanded by7.08 percent in the first six months of the year, the highest level since 2011.Additionally, the confidence of businesses has been reinforced.
At the recent mid-term Vietnam Business Forum(VBF) in Hanoi, Dominic Scriven, Executive Chairman of Dragon Capital, said theattractiveness of financial markets in emerging countries declined in the pastsix months of the year due to the China-US trade dispute and the rising USDinterest rate.
However, Vietnam still attracted 1.5 billion USDin investment, and this proved the trust of investors in the Southeast Asiancountry, he added.
Besides the aforesaid achievements, thesocio-economic performance exposed some shortcomings and challenges that needto be addressed.
According to economists, the economic growthquestion is not as worrisome as inflation – which is hoped to be kept below 4percent or lower in 2018.
However, a number of unfavorable factors have surfacedand caused high inflation in May and June such as the price hike of domesticfood and and global oil. Especially, the inflation in June expanded at thehighest pace over the past seven years.
Risks from natural disasters such as floods andtyphoons as well as the adjustment of some commodities priced by the State are definedas one of the factors that cause inflation hike.
At the monthly meeting in July, Prime MinisterNguyen Xuan Phuc affirmed the Government’s resolve to keep inflation undercontrol, stressing that the Government will not change economic and financialpolicies for the rest of the year.
Changes will not be made to environmental taxeson oil and petroleum products, value added tax, and prices of some publicservices and commodities such as electricity and healthcare, he added.-VNA
VNA
