Vietnam’s economy maintains growth amid global economic challenges

Vietnam’s economy maintained growth across sectors, especially tourism, in the first eight months of 2019 despite global economic challenges and escalating trade tensions, Prime Minister Nguyen Xuan Phuc said at a cabinet meeting in Hanoi on September 4.

PM Phuc said industry and agriculture recorded growth despite unfavourable factors. Meanwhile, the macroeconomy remained stable and inflation was curbed at 2.5 percent, the lowest level in the past three years, he said.

The exchange rate was stable, the government leader noted, adding that the confidence in the Vietnamese “dong” was confirmed, while many countries' currencies depreciated against the US dollar.

Exports increased significantly and trade surplus reached a record of more than 3.4 billion USD, he noted.

The protection of national territorial sovereignty has seen complicated developments, however, competent forces have done their best under the leadership of the Party and Government, PM Phuc stressed.

The PM also mentioned shortcomings such as the slow disbursement of public investment capital, landslides in the Mekong Delta and difficulties in agriculture and transport infrastructure, requesting relevant departments and sectors to quickly address the issues.

During the meeting, the Government will discuss the socio-economic development plan in 2020, the report evaluating the implementation of the State budget in 2019 and State budget estimates in 2020 as well as the State budget financial plan in 2020-2022.

According to the Ministry of Planning and Investment, the socio-economic performance in August and the first eight months of 2019 was positive.

In the January-August period, the disbursement of foreign direct investment (FDI) reached about 12 billion USD, a year-on-year rise of 6.3 percent.

Nearly 90,500 new businesses were established with total registered capital of over 1.15 quadrillion VND (49.45 billion USD), up 3.5 percent and 32 percent respectively.

The number of enterprises that suspended operations decreased by 7 percent and those resuming operations increased by 21.8 percent.

The index of industrial production (IIP) was estimated to expand by 9.5 percent, lower than the same period in 2018, but still higher than the same period in 2016 and 2017.

Total retail sales of goods and services were estimated at over 3.2 quadrillion VND (137.6 billion USD), up 11.5 percent year-on-year.

The country welcomed 11.3 million international tourists, a yearly increase of 8.7 percent.

Goods exports hit nearly 170 billion USD, up 7.3 percent year-on-year, of which exports of the domestic economic sector increased by 13.9 percent