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Vietnam Today

Socio-economic development remains robust over first 7 months

Released at: 13:36, 02/08/2018

Socio-economic development remains robust over first 7 months

Minister-Chairman of the Government’s Office Mai Tien Dung speaks at the press conference on August 1 (Photo: VNA)

From January to July, Vietnam enjoyed a trade surplus of $3.1 billion, Minister Mai Tien Dung tells press conference.

by Long Van

Vietnam achieved robust socio-economic development for the first seven months of the year, with a stable macro-economy and good control over inflation in spite of the escalating US-China trade war. This is according to Minister-Chairman of the Government’s Office Mai Tien Dung as quoted by the Vietnam News Agency.

Speaking at a press conference after the government’s regular meeting on August 1, Mr. Dung said the consumer price index (CPI) in July dropped by 0.09 per cent from the previous month after increasing for three consecutive months. The average CPI during the seven month period went up by 3.45 per cent, which is lower than 3.91 per cent when compared to the same time last year, he said.

The industry sector was the key driving force for the nation’s economic growth. The industrial production index in July shot up by 14.3 per cent as compared to the same month in 2017, which was the highest expansion since February 2018.

Meanwhile, the agricultural sector attained impressive results, with aquatic output surging 5.7 per cent.

The stock market made a remarkable recovery when the VN-Index on the Ho Chi Minh Stock Exchange reached 934.08 points on July 24, and the total capitalization value of the stock market rose by 8.3 per cent towards the end of 2017.

From January to July, Vietnam enjoyed a trade surplus of 3.1 billion USD, which is equivalent to 2.3 percent of the export revenue.

Regarding foreign direct investment (FDI), the minister lauded the sound growth of the flow of foreign capital. Foreign firms registered to invest nearly $23 billion in Vietnam while FDI disbursement was estimated at more than $9.8 billion, a year-on-year surge of 8.8 per cent.

Positive signs were also seen in the private sector. Nearly 75,800 new enterprises were established nationwide during the first seven months of the year, with a total registered capital of VND771 trillion ($33.34 billion), a year-on-year rise of 3.9 per cent in the number of firms, and an 11.6-per cent rise in terms of capital.

Also, 18,696 companies resumed their operations which marks an increase of 6.5 per cent compared to the same time last year.

Several international organizations recognized Vietnam’s economic reform efforts and gave an optimistic outlook for the nation’s economic growth. The Asian Development Bank (ADB) forecast that the Vietnamese economy would expand by 7.1 per cent while Standard Chartered predicted that Vietnam’s economic growth would be 7 per cent and inflation rate would be around 4 percent.

With regards to the United Nations’ sustainable development goal (SDG) index, Vietnam has moved up 11 steps to rank 57th out of 156 countries and territories, and third in ASEAN just behind Singapore and Malaysia.
 
Regarding the Global Innovative Index 2018 (GII Index 2018), Vietnam moved up two positions to place 45th out of 124 countries and territories, and 4th place in ASEAN after Singapore, Malaysia, and Thailand.

The latest report from the World Bank (WB) indicated that Vietnam’s Logistics Performance Index moved up by 25 places to rank 39th out of 160 countries.

Mr. Dung also pointed out shortcomings in the socio-economic situation including complicated developments such as weather, price hikes’ intense pressure on the macro-economy, barriers for local firms to expand their operations, and tardy equitization of state-owned enterprises.
He said that at the Government’s regular meeting, Prime Minister Nguyen Xuan Phuc ordered the relevant sides to work out solutions to address these issues in a timely manner.

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