Seven-month growth is mainly driven by the retail of goods and services (Photo: thanhnien.vn) Hanoi (VNA) –Country Director of the Friedrich Naumann Foundation for Freedom (FNF) in Vietnam AndreasStoffers has anticipated that the Vietnamese economy will continue its growthtrack.
During an interview recentlygranted to Lao Dong (Labour) newspaper, Stoffers said the Vietnamese economy grew by 3.72%in the first half. Though lower than last year, it still stood as a positivefigure amid the global economic downturn.
The average consumer price index (CPI) increased moderatelyby 3.12% year-on-year in January-July. The declining trend in the average CPIgrowth over the months is a positive sign indicating that Vietnam is ontrack to achieve the inflation control target of below 4.5% set for 2023.
During the first seven months of this year, the growth wasmainly driven by the retail of goods and services, which rose by 10.4% annually.The industrial production index in July also saw an increase from earlier this year.
Attributing these positive outcomes to thefiscal and monetary policies of the State Bank of Vietnam (SBV), he said thereduction in interest rates is stimulating credit demand and enhancingliquidity within the banking system and the economy, particularly in the creditsector. Alongside setting credit growth cap at 14% for this year, theSBV will issue necessary warnings.
Country Director of the Friedrich Naumann Foundation for Freedom in Vietnam Andreas Stoffers (Photo: laodong.vn) Inhis view, Vietnam’s GDP growth will exceed 5% this year. Apartfrom the contribution of FDI, additional momentum will be needed fromincreased public investment and personal consumption.
Inface of headwinds such as the Russia-Ukraine conflict; difficulties in Vietnam’spartner countries, especially the European Union; slow recovery in variousmarkets and the global inflation specter, he said acomprehensive set of solutions is required to both foster development andmanage risks effectively.
There should be an improvement in the entire financial sector,such as the establishment of a financial centre in Ho Chi Minh City in themedium term. the equally important is to promote cooperation between the public andthe private sector to generate a collective strength, thus creating theopportunity to access various financial products and international markets,enabling the public to invest in diverse asset types, he said.
He alsosuggested a push for financial education to help people understand financialproducts and make careful investment decisions as well as institutionalimprovement, particularly in finance.
To achieve set targets, he said it could be facilitated by the Governmentsupport through expediting institutional reform, modernising legal frameworks andcoordinating policies. The most crucial aspect is addressing the weakness indecision-making process that currently exists in certain administrative sectors.
At thesame time, there is a need to increase sustainability, step up circular economyand strongly digitise administrative processes, and improve environment protection.Boosting public investment while reducing inefficient structures, especially atState-owned enterprises, is also essential.
Tostimulate investment and create liquidity, interest rates could be cautiouslylowered further, with subsequent adjustments as the economy experiencessignificant recovery. Lastly, domestic consumption demand should also befurther bolstered, he added./.
