Vietnam Time

9/29/2017 1:53:44 PM

Vietnam’s economy performance in 9 months

Attracting Foreign Direct Investment (FDI) to Vietnam is in record high as of September 20, with newly registered capital of 14.6 billion USD.

On September 28, the Deputy Prime Minister and Chairman of the Monetary & Financial Advisory Council Vuong Dinh Hue chaired a meeting of the National Monetary and Financial Advisory Council to evaluate macroeconomic indicators in the 3rd Quarter and first 9 months of 2017.

The meeting of the council is aimed to discuss solution and recommendations, which will be submitted to the government in the process of macroeconomic management in a meeting on October 2017. At the meeting, members of the council agreed that the monetary and fiscal policies being managed efficiently, which has contributed to the positive results of economic indicators. As such, inflation rate continues being controlled at 4%, inflation rate in September increased 0.59%, mainly due to the continuously adjustment of oil price. Inflation rate has increased 1.83% compared to December 2016, while this number has increased 3.4% compared to the same period of last year, the average inflation rate at 3.97% tends to reduce in the remaining months of 2017. The average inflation rate in the first 9 months is 1.45% and is forecasted to be around 1.5 – 1.8%, which is under the target of the National Assembly.

Meanwhile, the total Gross Domestic Product (GDP) has increased by Quarters. The number announced at a meeting on Quarter III, 2017 shows, GDP will increase 7.46% (1st Quarter is 5.15%, 2nd Quarter is 6.28%). GDP growth rate in the first 9 months is at 6.41%. Growth rate in Quarter III has significantly increased due to the strong growth in industrial sector (13.2% compared to the same period of last year), with significant contribution from processing and manufacturing industry (12.77%), and increase in export (19.5% compared to the same period of last year).

Capital mobilization from governmental bond in 9 months reached 147 trillion VND, which is 80% of the year’s plan and thanks to the stable interest rate. Especially, the maturity period has increased 3.2 years compared to the same period of last year, which helps to reduce pressure on public debt from the period 2018 – 2019 to 2021 – 2022.

With regard to the stock market, for the first time in 10 years, the VN-Index has over 800 points. The derivation market is being operated efficiently after launching one month ago.

The foreign currency market is stable, with demands for foreign currency of citizens are timely dealt with. On the other hand, attracting FDI is in record high as of September 20, with 14.6 billion USD of newly registered capital. If this number includes projects with adjusted capital of 6.8 billion USD, the total registered capital will increase 21.7% compared with same period of last year. FDI fund disbursed in the first 9 months is 12.3 billion USD, up 15%.

In term of credit growth, members of the council said despite the government authorizes the State Bank of Vietnam (SBV) to increase the rate from 18% to 21%, however, SBV must closely monitor the market to avoid any fluctuation, as well as the credit quality affecting implementation progress of projects. Members of the council also highly regarded the positive performance of SBV in credit management after the issuance of Resolution No. 42/NQ-CP of the government to deal with non performing loans.

Members of the Council recommended the Government and the Prime Minister to continue the administrative reform process, reduce business procedures, in turn create favorable conditions for enterprises; quickly review and issue policies to attract enterprises investing in agriculture; instructing related administrative agencies to reduce interest rate and expenses for production and manufacturing./.

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