VINACHEM

Gross domestic product (GDP) growth this year may beat the 6.7% target, said Prime Minister Nguyen Xuan Phuc at a regular cabinet meeting on the socioeconomic performance of the country today, August 30, reported the Vietnam News Agency.

Citing statistics, the Government leader forecast that of the 12 targets assigned by the National Assembly for this year, four will certainly be met while the other eight could be surpassed.

He also predicted that the State budget collection would be 3-5% higher than estimated while public debts would decrease.

The execution of the 2018 plan is rewarding for the country, in terms of both quantity and quality. Labor productivity, and production and business capacity, including infrastructure for healthcare and education, have seen many achievements, he said.

He stressed that the economic situation was better in August than in July. The national macroeconomy is stable, while inflation has been kept under close control.

The headline consumer price index in August is up 0.45% over July, representing a year-on-year rise of 3.52%, Phuc said, predicting the full-year inflation rate would be below 4%, in line with the target approved by the law-making body.

Phuc further commented that key sectors had fared better, with industry expanding by 13.4% in August. “The sector has been the largest driver of growth, contributing to the GDP growth,” he said.

According to him, total retail sales of consumer goods and services have grown 11.2%. Besides this, as many as 25 groups of products have brought in export revenue of more than US$1 billion each. As a result, the country has posted a trade surplus of US$2.8 billion.

He noted that the country has witnessed a marked improvement in investment capital. Investments by the State budget have climbed to some 7% in August.

Meanwhile, the country has attracted more than US$19 billion in new foreign direct investment (FDI), and US$11.5 billion of FDI has been disbursed so far this year. Capital contributions and share purchases by foreign investors through mergers and acquisitions have surged by 50.9% to more than US$5.2 billion.

The confidence of foreign investors in the Vietnamese economy has remained solid despite global economic uncertainties, said the Prime Minister.

He added that more than 87,400 companies had been set up nationwide this year, with registered capital of VND878.61 trillion (US$37.7 billion), rising by 2.4% and 6.9%, respectively, from last year. In addition, some 21,000 companies have resumed operations, marking a year-on-year increase of 9.3%.

Over the past eight months, the number of poor households has dipped by 8.7%, while the number of poor residents has plunged by 40.4%, according to the Government leader.

National defense, security and diplomacy have been strengthened, while Vietnam’s prestige in the international arena has improved. International organizations have spoken highly of the country’s economic growth, he added.

With Vietnam hosting the World Economic Forum on ASEAN 2018 in Hanoi City in September – the nation's most important external event this year, with leaders of major economies in attendance – the Prime Minister asked the Ministry of Foreign Affairs and the relevant departments and agencies to prepare thoroughly for the event.

The concerned ministries and agencies were also told to act against the untruthful reports by several news outlets in Europe that had damaged the image of Vietnamese tra fish (pangasius), a key export earner for Vietnam. - SGT -