Eight-month economy sees positive changes

Illustrative Image (Photo:vietnamnet)

Vietnam recorded positive changes in almost all fields in the first eight months of this year with its macro-economy remaining stable, economic development staying on track, business climate improved and social security ensured, according to Minister of Planning and Investment Bui Quang Vinh. 

Economic experts said thanks to the clear and thorough guidance of the Government and Prime Minister as well as comprehensive measures taken by ministries, sectors and localities, the country’s macro-economy is under control and shows remarkable recovery. 

The industrial production index in August grew 9 percent from last year’s same month, bringing a 9.9 percent increase to the sector from January-August. 

The August CPI dropped by 0.07 percent month-on-month but rose 0.61 percent year-on-year, raising the eight-month figure to 0.83 percent compared to the same period last year.

Meanwhile, total retail sales and service revenues were estimated at 271.7 trillion VND (11.9 billion USD) in August, up 0.2 percent against the previous month and 10.1 percent year-on-year.

Vietnam also witnessed a strong increase of foreign direct investment (FDI) with new 1,219 FDI projects worth 7.87 billion USD and 389 projects that expanded their capital by 5.46 billion USD as of August 20 this year, representing respective rises of 8.7 percent and 82.8 percent against those recorded in the same period last year.

The country’s export turnover reached 106.3 billion USD in the first eight months of 2015, up 9 percent year-on-year.

In spite of the positive results, the economy has also faced difficulties as the country’s goods are at a disadvantage in competing with commodities imported from China, especially given China’s recent devaluation of its Yuan . 

Recent reductions of crude oil prices in the world have impacted the country’s target budget collection. 

According to Dr. Nguyen Dinh Cung, Director of the C entral Institute for Economic Management ( CIEM ), production and business activities of Vietnamese enterprises saw numerous obstacles as the volume of inventory remains high while the restructuring of enterprises remains slow. 

Chairing a recent meeting with representatives of several ministries and agencies to evaluate the impacts of the world’s rapidly changing economy on the domestic economy, Prime Minister Nguyen Tan Dung asked ministries and sectors to outline flexible policies, intensify close coordination to promote export and economic growth, and ensure stability for the domestic market. 

He also stressed the need to keep a close watch on changes in the global economy and put forth solutions swiftly to limit their adverse impacts and extract and fully tap advantages. 

The restructuring of State-owned enterprises (SOEs) should be accelerated, focusing on equitising SOEs, renovating technology, increasing labour productivity for sectors with high export proportions and developing export commodities with high added value and potential, the Government leader said. 

Enterprises were tasked with fully tapping the domestic market and taking advantages of free trade agreements signed with foreign partners to expand their markets.

The Prime Minister also requested ministries and sectors hold firm to set targets, saying that emphasis should be placed on stabilising the macro-economy, curbing inflation, promoting export, maintaining stable exchange and interest rate and preventing goods smuggling and trade fraud.-VNA