Macro economy remains stable in six months

Vietnam’s macro economy remained stable in the first six months of 2017 while inflation was curbed so as to reach the national steering committee on price management’s yearly target of 4 percent.

Notably, economic growth in the first half of this year reached 5.73 percent whilst the figure in the first half of 2016 stood at 5.65 percent, the national financial and monetary policy advisory council reported at a meeting in Hanoi on July 1.

Gross domestic product (GDP) growth in the second quarter of 2017 was estimated at 6.17 percent, a surge compared to that of the first quarter 5.15 percent.

Since the beginning of this year, the State Bank of Vietnam has deployed measures to manage interest rates and exchange rates to stabilise the monetary market.

Total means of payment rose by 5.69 percent and credit growth was recorded at 7.98 percent, while interest rates remained stable.

The council’s members also forecast global economic risks, including a shift to trade protection and declining export growth to the US and EU, which will affect the domestic economy.

The council called on the Government to seek solution to accelerate disbursement of foreign direct investment, which is slower than in previous years.

It also proposed reconsidering the calculation of average inflation and the adjustment of electricity prices to boost investment in the power industry.

Members urged the Government to direct ministries and sectors to continue studying mechanisms to mobilise gold and US dollars kept by individuals for production and business, while looking to reduce deposit and lending interest rates.

Deputy Prime Minister Vuong Dinh Hue, also chairman of the council, said the Government, along with ministries and sectors, will continue monitoring macro-economic developments and push ahead with investment restructuring, capital divestment and equitisation of State-run businesses.

At the same time, the Government will reform the operational mechanism of public administrative units and promulgate documents to implement the National Assembly’s Resolution on handling bad debts, boost administrative reforms, develop logistics, facilitate trade and prevent trade fraud.