Vietnam’s economic conditions continued to improve, according to the World Bank (WB). (Photo: vneconomy.vn) Merchandise exports hit a record high of 31.9 billion USD,helping maintain a second consecutive month of trade surplus while FDIcommitment recovered after a brief dip in October, according to the report.
The number of newly established formal firms increased by 45percent month-on-month in November, a second month of increase since May. Firm exitnumbers also increased, but at a slower pace than firm entry.
More businesses resumed than suspended operations, it said,adding that the higher net entry could be attributed to improved economicconditions.
The Consumer Price Index (CPI) increased by 0.3 percent month-on-month in November. (Photo: vneconomy.vn) Food prices continued to trend down, falling by 0.2 percent month-on-monththanks to well-maintained food supply chains.
Compared to a year ago, the CPI roseby 2.1 percent year-on-year, slightly higher than in October, but well belowthe 4.0 percent target set by the State Bank of Vietnam.
The government continued its contractionary fiscal stance asthe budget balance posted another month of surplus, driven by strong revenuecollection, the report noted.
The policy of “living with COVID-19” will involve continuedvigilance and fast action by the authorities, both in vaccination and in socialdistancing, testing, and quarantining. There is also clear need for fiscal policysupport to boost private demand and help the domestic economy recover.Providing financial assistance to impacted workers and households would be anessential avenue to achieve this objective, according to the report.
Given the available fiscal space, and difficultiesregistered in implementing the budget in 2021, another policy option for consideration is a reduction inthe value-added taxes for 2022 to support private consumption./.
VNA
