The meeting of the National Advisory Council on Financial and Monetary Policies on March 28 (Photo: VNA) Hanoi (VNA) – The NationalAdvisory Council on Financial and Monetary Policies met on March 28 to assess theeconomic growth in Quarter 1 and determine factors that can affect growth inthe remaining months of the year, including obstacles in the banking andfinancial sectors.
A report of the State Bank ofVietnam (SBV) showed domestic demand stayed stable in the first three months ofthe year, and consumption and foreign direct investment (FDI) maintained a goodgrowth compared to the same period last year. Newly-registered and additional FDIcapital rose by 82.6 percent while FDI disbursement picked up 6.2 percent on ayearly basis.
However, export growth hasslowed down remarkably, with a 5.4 percent increase this year to March 15compared to 26.5 percent in the same period last year, according to statisticsof the General Department of Vietnam Customs. Low increases in the export offarm produce, aquatic products, minerals, and phone-electronics-computers andparts have affected the growth of industrial production.
The SBV estimated the GDP growthrate in the first quarter at 6.3-6.5 percent, which is lower than theunprecedented level of 7.45 percent in Quarter 1 last year but still higher thanthe Q1 figures of other years since 2009.
Deputy Minister of Industry andTrade Tran Quoc Khanh said the growth in foreign trade value is lower thanexpectation, estimated at 4.7 percent. However, he was still confident that thetargets set by the National Assembly could be achieved as there is big room forgrowth in such sectors as steel, automobile, thermal energy, leather-footwear, textile-garmentand agro-forestry-fisheries. The targets set for this year included a 9-10percent growth in industrial production and 8-10 percent growth in exports.
The advisory council’s membersshared the view that the domestic economy has remained stable, and there is noneed to revise solutions specified in the Government’s Resolution 01 on keytasks and measures to carry out the socio-economic development plan and statebudget estimate. They said ministries and sectors have run proactive andflexible monetary policies in close coordination with fiscal policies andothers to keep inflation stable, contributing to stabilizing the macro economyand supporting economic growth.
They agreed that the currency’svalue and the inter-bank interest rate have been kept stable, and total meansof payment went up 2.67 percent compared to the end of 2018, thus helping controlinflation.
The council’s members recommended pushingahead with measures specified in the Government’s Resolutions 01 and 02 whilekeeping watch of developments in the domestic and world situations for timelyadjustments.
Many members suggested that theGovernment work to remove bottlenecks in the Law on Planning and early completethe adjustment of the Law on Public Investment.
The council also urged theGovernment to accelerate the disbursement of public investment, especially forbig-scale and major projects.-VNA
VNA
