Vietnam’s economic recovery trend continues to be maintained in thethird quarter of 2014 with signs of faster transformation, Nhan Dan(People) online newspaper said in a commentary on October 1.
GDPgrowth rate in the period was estimated at 6.19 percent, higher than the5.25 percent in the second quarter and 5.09 percent during the firstquarter. GDP growth in this quarter is also higher than that of the sameperiod two years ago.
For the first nine months of the year, thecountry's GDP growth reached 5.62 percent, much higher than the rate of5.14 percent in 2013 and 5.1 percent in 2012.
The figures showthat, even under the adverse effects of both external and internaldifficulties, the country's economy continues to recover and regaingrowth momentum.
Manufacturing has been improved with industrialproduction index increased gradually each month and much higher than thesame period last year. The nine-month period also recorded stronggrowth in the processing industry, manufacturing, service sector, andexports.
Along with the growth momentum, macro-economic stability has been maintained with higher quality.
Inflationwas held steadily at 2.25 percent, the lowest in the past 10 yearsdespite the spike in the education group figure to 7.17 percent inSeptember (the month students returned to school). Core inflation is in adownward trend from last year and dropped to 3.12 percent in Septembercompared with the same period last year.
The State budget balancehas been improved as budget collection progress was higher than thesame period in 2013, up 17.2 percent and accounting for 81.3 percent ofthe estimated. The State budget deficit during the nine-month periodmade up 58.9 percent of the overspending that the National Assembly hadallocated early this year. Vietnam also gained a trade surplus of 2.5billion USD, contributing to national foreign currency reserves.
Thepositive economic development is remarkable, however, the economy stillfaces many difficulties and challenges threatening the economic growthtarget of 5.8 percent for the whole year. Aggregate demand has beenimproved, yet is still not strong enough to generate momentum for theeconomy, while the business community, an important factor to createeconomic growth, is also in difficulty.
The figure of dissolvedor decommissioning enterprises remains high, up to 48,330 with a totalregistered capital of more than 408 trillion VND (19.2 billion USD), up13.8 percent compared to the same period in 2013.
Inventory isstill hard to solve for many businesses. Also due to productiondifficulties, business capital absorption capacity is at low level,leading to the low credit growth of 6.62 percent, about half of theyearly plan. Besides, bad debts have become a big challenge as thenon-performing loan ratios of commercial banks are tending to riseagain.
Clearly, the economic growth target of 5.8 percent thisyear will not be easily achieved if difficulties and challengesmentioned above are not solved in a timely, comprehensive and effectivemanner. Fulfilling the goal will pave the way for maintaining economicrecovery momentum in the coming year.-VNA
GDPgrowth rate in the period was estimated at 6.19 percent, higher than the5.25 percent in the second quarter and 5.09 percent during the firstquarter. GDP growth in this quarter is also higher than that of the sameperiod two years ago.
For the first nine months of the year, thecountry's GDP growth reached 5.62 percent, much higher than the rate of5.14 percent in 2013 and 5.1 percent in 2012.
The figures showthat, even under the adverse effects of both external and internaldifficulties, the country's economy continues to recover and regaingrowth momentum.
Manufacturing has been improved with industrialproduction index increased gradually each month and much higher than thesame period last year. The nine-month period also recorded stronggrowth in the processing industry, manufacturing, service sector, andexports.
Along with the growth momentum, macro-economic stability has been maintained with higher quality.
Inflationwas held steadily at 2.25 percent, the lowest in the past 10 yearsdespite the spike in the education group figure to 7.17 percent inSeptember (the month students returned to school). Core inflation is in adownward trend from last year and dropped to 3.12 percent in Septembercompared with the same period last year.
The State budget balancehas been improved as budget collection progress was higher than thesame period in 2013, up 17.2 percent and accounting for 81.3 percent ofthe estimated. The State budget deficit during the nine-month periodmade up 58.9 percent of the overspending that the National Assembly hadallocated early this year. Vietnam also gained a trade surplus of 2.5billion USD, contributing to national foreign currency reserves.
Thepositive economic development is remarkable, however, the economy stillfaces many difficulties and challenges threatening the economic growthtarget of 5.8 percent for the whole year. Aggregate demand has beenimproved, yet is still not strong enough to generate momentum for theeconomy, while the business community, an important factor to createeconomic growth, is also in difficulty.
The figure of dissolvedor decommissioning enterprises remains high, up to 48,330 with a totalregistered capital of more than 408 trillion VND (19.2 billion USD), up13.8 percent compared to the same period in 2013.
Inventory isstill hard to solve for many businesses. Also due to productiondifficulties, business capital absorption capacity is at low level,leading to the low credit growth of 6.62 percent, about half of theyearly plan. Besides, bad debts have become a big challenge as thenon-performing loan ratios of commercial banks are tending to riseagain.
Clearly, the economic growth target of 5.8 percent thisyear will not be easily achieved if difficulties and challengesmentioned above are not solved in a timely, comprehensive and effectivemanner. Fulfilling the goal will pave the way for maintaining economicrecovery momentum in the coming year.-VNA
