Vietnam's economy is showing signs of stable development in the face
of difficulties caused by the global economic crisis, director of the
Ministry of Planning and Investment's General Statistics Office Do Thuc
Thuc made his comments at a press conference on June 29 in Hanoi on
socio-economic situation in the first half of this year. He said the
country's gross domestic products (GDP) grew 4.38 percent in the first
six months against the same period last year.
the growth was lower than that targeted for the whole year at 6-6.5
percent, the GDP was recognised as being in an upward trend. GDP growth
in the second quarter was 4.66 percent, whereas it was merely 4 percent
in the first one," Thuc said.
The growth stemmed from a
better performance of industrial and construction sectors which had a
high proportion of influence over other sectors. Manufacturing and
construction areas recognised a solid growth at 4.52 percent in the
second quarter, compared to 2.94 percent in the first.
the first half, services reflected the highest growth at 5.57 percent,
next was manufacturing and construction, which expanded 3.81 percent;
the agro-forestry and seafood sector went up only 2.81 percent.
Meanwhile, the consumer price index growth had been curbed by gradually decreasing growth in the first half.
CPI increased 1 percent and 1.37 percent in January and February. Then
the growth rate inched up 0.16 percent, 0.05 percent and 0.18 percent in
March, April and May, respectively.
The index showed a fall in growth of 0.26 percent in June, the first period of negative growth in 38 months of a rising index.
The State budget increased 5.1 percent, as a result of over-expenditure
which was held at 4.8 percent, lower than the target of 5 percent, the
Exports skyrocketed by 22.2 percent,
whereas imports maintained a lower growth at 6.9 percent in the first
half, making trade deficit slow down nine times lower than in past
According to the ministry, the total investment
capital of the whole socio-economy reached 431.7 trillion VND (20.56
billion USD) in the first half, a year-on-year increase of 10.1 percent
and equal to about 34 percent of the total GDP. Of this, State-owned
capital was 158.7 trillion VND (7.56 billion USD), accounting for 36.8
percent, rising 6.8 percent against the same period last year.
The non-State sector hit 163 trillion VND (7.76 billion USD), making up
the highest proportion at 37.7 percent, increasing 18.1 percent. The
remainder was contributed by the FDI sector with a growth rate of 4.2
However, Thuc said: " Vietnam faces lower demand and it is a hindrance and a challenge for stable economic development.
"It requires appropriate policies on finance, currency, banking
interest rates, total outstanding loans and public investment among
others. The policies must be governed timely under strict control in
order to ensure effective economic development and inflation is reined
Poor demand was shown by high goods inventories, Thuc
said. The inventory index of industrial products increased by 26 percent in
June, whereas the indices represented growth rates ranging from 26.9
percent to 34 percent in the first five months.
of enterprises that stopped operations in the first half reached 26,324,
up 5.4 percent from the same period last year, whereas the figure of newly
established companies slumped 12.5 percent year-on-year, he said.
The unemployment rate was 2.29 percent, slightly higher than the previous corresponding time.
With current impediments and poor demand, it will not be easy for
economic growth to surpass 6 percent for the whole year, Thuc said./.