Vietnam may face challenges to achieve GDP growth of 7% this year due to the African swine fever, higher power and petroleum prices.

The country’s GDP growth was estimated at 6.79% in the first quarter of this year

According to the General Statistics Office of Vietnam (GSO), the country’s GDP growth was estimated at 6.79% in the first quarter of this year. 

Nguyen Bich Lam, head of the office, said the Vietnamese economy had shown positive signs in the business environment in the first three months of the year.

During the period, nearly 28,500 enterprises were set up. Foreign direct investment disbursement reached USD4.12 billion, a record high. Meanwhile, the number of international visitors to Vietnam reached 4.5 million, the highest figure compared to the same period in previous years.

However, the GSO reported that some factors, including the on-going African swine fever which had spread to many localities would affect the country’s GDP growth goal. To date, 82,200 pigs have been culled due to the epidemic.

This year may see greater inflationary pressure following the recent electricity and petroleum price hikes.

Do Thi Ngoc, Head of Price Statistics Department under the GSO, said that the electricity price rise would increase the CPI by 0.29% in 2019.

Higher medical charges and school textbook prices, as well as the rise in basic wages from July 1, would create pressure on inflation.

Ngoc noted that the GSO proposed to stabilise prices of all goods from now to the year-end in order to curb the GDP growth at below 4% this year.

“Firms need to have solutions to save electricity and improve technology to lower production costs,” Ngoc suggested.

Tien Phong/Dtinews