Vietnam has recorded robust socio-economic development in the first seven months of the year, with stable macro-economy, and good control over inflation, in the context of the escalating US-China trade war, said Minister-Chairman of the Government’s Office Mai Tien Dung.


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Minister-Chairman of the Government’s Office Mai Tien Dung speaks at a press conference following the Government's regular meeting



Speaking at a press conference after the government’s regular meeting on August 1, Dung said the consumer price index (CPI) in July dropped by 0.09 percent from the previous month after increasing three consecutive months. The average CPI in the seven-month period went up 3.45 percent, which is lower than 3.91 percent in the same time last year, he said.

The industry sector was the key driving force for the nation’s economic growth. The industrial production index in July shot up 14.3 percent as compared to the same month in 2017, which was the highest expansion since February 2018.

Meanwhile, the agricultural sector attained impressive results, with aquatic output surging 5.7 percent.

The stock market made a remarkable recovery when the VN-Index on the Ho Chi Minh Stock Exchange reached 934.08 points on July 24, and the total capitalization value of the stock market rose 8.3 percent from the end of 2017.

During the January-July period, Vietnam enjoyed a trade surplus of 3.1 billion USD, equivalent to 2.3 percent of the export revenue.

Regarding foreign direct investment (FDI), Dung laid stress on the sound growth of foreign capital flows. Foreign firms registered to invest nearly 23 billion USD in Vietnam while FDI disbursement was estimated at more than 9.8 billion USD, a year-on-year surge of 8.8 percent.

Positive signs were also seen in the private sector. Nearly 75,800 new enterprises were established nationwide in the first seven months of the year, with a total registered capital of 771 trillion VND (33.34 billion USD), a year-on-year rise of 3.9 percent in the number of firms, and a 11.6-percent rise in terms of capital.

Also, 18,696 companies resumed their operations, up 6.5 percent from the same time last year.

International organisations recognised Vietnam’s economic reform efforts, and gave optimistic outlook for the nation’s economic growth. Of them, the Asian Development Bank (ADB) forecast that the Vietnamese economy will expand 7.1 percent while the Standard Chartered predicted Vietnam’s economic growth at 7 percent and inflation rate at around 4 percent.

In the United Nations’ sustainable development goal (SDG) index, Vietnam moved up 11 steps to rank at 57th out of 156 countries and territories, and third in the ASEAN, just behind Singapore and Malaysia. 

Regarding the Global Innovative Index 2018 (GII Index 2018), Vietnam was up two positions to 45th place among 124 countries and territories, and 4th place in ASEAN after Singapore, Malaysia, and Thailand.

The latest report from the World Bank (WB) indicated that Vietnam’s Logistics Performance Index moved 25 steps to 39th place among 160 surveyed countries.

Dung also pointed out shortcomings in the socio-economic situation, including complicated developments of weather, price hikes’ intense pressure on the macro-economy, barriers for local firms to expand their operation, and tardy equitisation of state-owned enterprises.

He said that at the Government’s regular meeting, Prime Minister Nguyen Xuan Phuc ordered relevant sides to work out solutions to addressing such issues in a timely manner.


Driving forces for economic growth need to be upheld: PM


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At the Government’s regular meeting on August 1



Driving forces for Vietnam’s economic growth need to be maintained not only in 2018, but also in the years to come, Prime Minister Nguyen Xuan Phuc said at the Government’s regular meeting on August 1.

“We should continue working to create market confidence, and win trust of enterprises so as to branch out business and production in the coming time”, he stressed.

Regarding the country’s socio-economic development, PM Phuc noted that four macroeconomic targets have been ensured, including sound growth of gross domestic production (GDP), price stability, reduction of unemployment rate, and net export turnover. The nation’s unemployment index fell 2.2 percent for the first time.

Thanks to institutional reform, the Government’s direction, and benefits from deep global integration, the economy went into a reverse, starting to grow in the second quarter. 

High-tech application has initially improved labour productivity, he said, adding that Vietnam’s logistics index moved five steps to be in top three among ASEAN members, just behind Thailand and Singapore.

However, he pointed out some short-term risks that the economy may encounter, namely impacts of the US-China trade war, trade deficit, reversing foreign direct investment (FDI) flow, reducing remittances, and trade protectionism.

“Our foreign currency reserve is now at 63 billion USD, but it cannot make sure that the economy is able to control the exchange rate amid impacts of global financial market”, he said, requesting flexible management of the exchange rate.

PM Phuc agreed not to change financial policy in the fiscal year 2018, comprising gasoline tax, VAT, and prices of commodities and public services. He ordered tight control of education and health care service prices to prevent soaring inflation.

He asked relevant ministries to tighten fiscal discipline, complete budget collection plan, and accelerate disbursement of public investment in line with the set plan.

Also, he urged the finalisation of public investment law, and construction of key infrastructure works, especially in transport sector.

Besides export markets, local firms should pay due attention to the nearly 100 million people domestic market by improving service quality and food hygiene and safety, he noted.

Regarding slow equitisation progress in some state-owned companies, PM Phuc ordered inspection in relevant localities.

Ministries and agencies must complete the draft Decree on amending and supplementing business conditions, he said, recommending a cut of 50 percent of commodities that must go through specialsied inspections, and more favourable conditions for both people and businesses.

Agricultural shake-up must be promoted, encouraging firms and cooperatives to land more investment in the sector to generate incomes for farmers. This should be made in companion with market reorganisation in processing and manufacturing for sustainable development for post 2020 period.

As economic growth is closely attached to local livelihoods and environment, the Government leader laid stress on environmental protection, and social order and safety.

He lauded the police forces for busting a large-scale drug trafficking ring in Son La province and many other serious cases.

He ordered the Ministry of Agriculture and Rural Development and relevant ministries and agencies to draw out specific programmes in response to natural disasters.

Mentioning critical losses in terms of officials following wrongdoings in the Ministry of Public Security and the Ministry of Information and Communications, PM Phuc called on Cabinet members to set examples in implementing the Resolution adopted at the 4th plenum of the 12th Communist Party of Vietnam Central Committee on enhancing Party building and rectification, and preventing and curbing ideological, ethical and lifestyle degradation as well as the manifestation of “self-evolution” and “self-transformation” inside the Party.

VNA