Vietnam’s economic growth likely to reach set target in 2019: VEPR

The Vietnam Institute for Economic and Policy Research (VEPR) has predicted Vietnam’s economic growth would accelerate in the third quarter and then reach 7.17 percent the last quarter to hit the Government’s target of 6.6 to 6.8 percent for the full year.
Vietnam’s economic growth likely to reach set target in 2019: VEPR ảnh 1Workers manufacture mechanical tools at the Japan-invested Kyouwa company, based in the Long Hau industrial park of the southern province Long An (Photo: VNA)
Hanoi (VNS/VNA) - The Vietnam Institute for Economic and Policy Research (VEPR) has predicted Vietnam’seconomic growth would accelerate in the third quarter and then reach 7.17 percentthe last quarter to hit the Government’s target of 6.6 to 6.8 percent for thefull year.

In a macroeconomic report presentedon July 11, the VEPR said the country’s economy grew at 6.71 percent in the secondquarter of 2019, down from 6.79 percent in the first quarter. The institute forecast Vietnam's economic growth is likely to reach 6.96 percent in 2019.

According to the report, in the firstsix months of the year, social investment reached 822.9 trillion VND (35.47billion USD), up 10.3 percent compared to the same period in 2018.

VEPR Director Nguyen Duc Thanh saidthat despite the expectation that the US-China trade war would stimulate theflow of capital into the country, the inflow had not really happened.

The 9.7 percent rise in FDI,compared to 8.5 percent in the same period last year, still lagged behindthe investment poured into the non-state sector.

However, the FDI sector still playeda crucial role in economic growth through exports.

More than 1,700 new FDI projectswere licensed in the first half of 2019 with total registered capital of about7.4 billion USD, down 37.2 percent from last year.

The manufacturing and processingsector attracted 73.4 percent of the newly registered capital.

China was still Vietnam’s biggestinvestor with the newly registered capital of more than 1.6 billion USD,followed by the Republic of Korea, Japan and Hong Kong.

“However, without a seriousselection, FDI enterprises from China may bring potential risks of outdatedtechnologies, negative environmental impacts and workingconditions," said Thanh. "This will adversely affect Vietnam’sinstitutional reforms as it signs new-generation FTAs."

To meet the requirements and takeadvantage of the EVFTA (EU – Vietnam Free Trade Agreement), which wassigned in late June, the report urged the Government to reassess incentives forFDI enterprises – including taxes and land rent reductions – togive them equal standing with domestic firms and ensure the quality ofFDI.

Vietnam is expected to face bothchallenges and opportunities after joining EVFTA, which requires thecountry to improve labour conditions, environmental standards and intellectualproperty rights.

In the second quarter, some 38,000companies were established, creating more than 330,000 new jobs.

The exchange rate of VND to USD incommercial banks fluctuated widely during the quarter and increasedsignificantly in May.

According to finance expert Can VanLuc, the exchange is becoming more stable thanks to flexible mechanisms fromthe State Bank of Vietnam and strengthened foreign exchange resources. Theexchange rate is only expected to fluctuate within a band of 1.5 to 2 percentfrom now until the end of the year.

Inflation rose to 2.65 percent, thelowest level in the last three years. However, it is predicted toincrease in the near future following increases in foodprices, education-related expenses and fluctuating energy prices.-VNS/VNA
VNA

See more

A total of 18,893 cars were sold in Vietnam in January, a drop of 40% compared to the previous month (Photo: VietnamPlus)

Car sales in Vietnam down 40% in January

Experts attributed a sharp decline in car sales to the Lunar New Year (Tet) holidays, impacting consumers' purchasing power. Consumers tend to wait for new models and releases at this time of year, contributing to lower sales during this period.

Illustrative image (Photo: VNA)

Retail fuel prices in latest adjustment

According to the new pricing, E5 RON92 bio-fuel is now priced at 20,598 VND per litre, up 156 VND, while RON95-III costs 21,074 VND per litre, an increase of 146 VND.

NA Chairman Tran Thanh Man speaks at the session on February 13. (Photo: VNA)

NA weighs new policies to boost science, technology, innovation

The resolution, presented at the February 13 session of the NA Standing Committee, seeks to establish a legal framework that would effectively boost national scientific-technological advancement and digital transformation, making them driving forces for socio-economic development to deliver on the dual targets by 2030 and 2045 as outlined at the 13th National Party Congress.

CPI in January 2025 rose by 0.98% compared to December 2024 (Photo: thoibaotaichinhvietnam.com)

Fiscal, monetary policies support demand stimulation, price stabilisation

These efforts, in conjunction with the implementation of monetary policies and other macroeconomic policies, aim to solve difficulties for businesses and the public, stabilise the macroeconomy, control inflation, ensure the balance of the economy, promote economic growth, and secure social welfare and people's livelihoods.

People line up to register for land auctions in Hoai Duc district, Hanoi. (Photo: VNA)

Affordable housing for young buyers a win-win: HoREA

Most young people are ambitious and have a long career path ahead of them to generate income and repay loans. Typically, within 10-15 years, their earnings will double or triple, making such loans low-risk for banks, said HoREA

An apartment and villa complex in Ha Dong district, Hanoi. (Photo: VNA)

Taxes on real estate based on time property is held not feasible: Justice Ministry

In their latest draft of a proposal to establish a new Law on Personal Income, to replace the current one, the MoF has proposed the Government impose taxes on income from real estate transactions based on the period of ownership – or holding period – which is the time between when an investor buys and sells a land or property.

Part of Ha Long city in Quang Ninh province (Photo: VNA)

Quang Ninh targets 14% GRDP growth in 2025

Secretary of the Quang Ninh Party Committee Vu Dai Thang emphasised that achieving this target would require Quang Ninh’s economy to reach approximately 395 trillion VND (15.4 billion USD) in 2025.