Bright spots abound national economy expected to stay on a roll

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Illustrative image (Photo: VNA)

Illustrative image (Photo: VNA)

The index of industrial production (IIP), foreign direct investment (FDI) and export-import were among the bright spots of the national economy in the first five months of this year, experts have said.

Such bright spots came from both the domestic and FDI sectors, signalling that exports will drive the economy in the year.

According to the General Statistics Office (GSO), the macro economy remained stable, inflation was under control, and major economic balances were ensured. The consumer price index (CPI) in the reviewed period rose 4.03% year-on-year, and core inflation, up 2.78%. The IIP increased 6.8%, with the industrial sector recovering more positively over time.

The FDI influx into Vietnam reached 11.07 billion USD in the five months, a year-on-year rise of 2%. Notably, the FDI disbursement was estimated at 8.25 billion USD, up 7.8%, the highest January-May figure over the past five years.

The country exported 156.77 billion USD worth of goods, up 15.2%, and imported 148.76 billion USD, up 18.2%, resulting in a trade surplus of 8.01 billion USD, statistics show.

Former General Director of the GSO Nguyen Bich Lam pointed to multiple favourable conditions for the economy like the recovery of major export markets, inflation controlled in world leading economies that are Vietnam’s important, big trade partners, and dropping goods inventory.

However, the economy has yet to completely bounce back, as seen in the increase of only 8.7% year-on-year in retail sales and services revenue (5.2% if the price factor is excluded), as compared with 9.3% recorded in the corresponding time last year, along with a host of difficulties facing businesses.

Besides, global uncertainties have also posed risks to the global economy’s stability and development, including Vietnam, said Minister of Planning and Investment Nguyen Chi Dung.

The minister proposed the Government order the drastic, uniform, and effective implementation of solutions and policies, with attention paid to support for domestic firms, and preparation for the wave of FDI shifting.

Localities should accompany enterprises, while helping them remove procedure bottlenecks, he continued, affirming that the Government will adopt more support policies towards enterprises in the time ahead.

Lam suggested the Government quickly complete legal documents on export-import; implement fiscal and monetary policies to help businesses increase supplies, reduce costs and raise the competitiveness of their products; step up trade promotion; and persify export-import markets.

The economy is forecast to rebound better than the first five months thanks to world aggregate demand, and the effectiveness of disbursement of public investment capital, and FDI attraction, he said./.

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