Growth engines rev up in first four months

The Vietnamese economy is expected to carry momentum in the months to come. (Photo: VNA)

The Vietnamese economy is expected to carry momentum in the months to come after experiencing improvements in foreign direct investment (FDI) attraction, industrial production, and retail sales, among others, in the first four months of this year, experts have said.

The General Statistics Office (GSO) reported that the macro economy remained stable, inflation was controlled and major economic balances were ensured during the period.

Specifically, the country’s April consumer price index (CPI) inched up 0.07% month-on-month, and 4.4% year-on-year. In the four months, it grew by 3.93% year-on-year, and the core inflation was up 2.81%.

State budget revenue was stood at 175.6 trillion VND (6.91 billion USD) last month and 733.4 trillion VND in the January-April period, equivalent to 43.1% of the yearly estimate, and up 10,1% year-on-year.

In April, the country’s total trade value reached some 61.2 billion USD, down 5.2% from the previous month, but up 15% compared to the same period last year. The figure hit 238.88 billion USD in the first four months, up 15.2% year-on-year, with exports up 15%, imports up 15.4%, and a trade surplus of 8.4 billion USD.

For FDI disbursement, it increased 7.4% year-on-year to 6.28 billion USD, the highest in a January-April period recorded over the past five years.

Former General Director of the GSO Nguyen Bich Lam, however, said that the recovery pace remains modest, elaborating that the index of industrial production in April edged up only 0.8% from the previous month.

Moreover, agriculture – a pillar of the national economy – is facing drought and saltwater intrusion, which would affect food production and husbandry, Lam added.

Given the global economic volatility and extreme weather patterns, the agro-forestry-fishery sector is forecast to encounter more difficulties in the time ahead, he said.

To help the national economy sail through headwinds and recover quickly and sustainably, economists have suggested the Government and localities focus on boosting domestic consumption, raise service quality, and reduce air fares to promote domestic tourism and attract more international visitors.

They also suggested the roll-out of preferential credit packages for major sectors, and tax incentives, the completion of legal documents on exports and imports, trade promotion activities, and market persification.

Businesses should bring into full play opportunities and commitments of trade agreements to boost exports, keep updated on market information, and seek new orders and markets, they said.

Lam held that the Government should implement fiscal and monetary policies flexibly, and work to reduce monetary inflation pressure on the economy, adjust exchange rates flexibly to stabilise the prices of imported raw materials, and improve the competitiveness of home-made products./.