VINACHEM

HA NOI — The country's economy outlook continued its rapid recovery in the first half of this year with positive trends in two key economic indicators, gross domestic product and consumer price index, reported the Ministry of Planning and Investment.

In the first six months, GDP grew from 6 to 6.1 per cent. In the first quarter, GDP increased by 5.83 per cent and then rose from 6.2 to 6.4 per cent in the second quarter. CPI rose 0.22 per cent in June compared to the previous month.

All sectors achieved growth rates higher than the same period last year. In particular, agriculture, forestry and aquaculture grew from 2.7 to 3.2 per cent, industry and construction increased from 6 to 6.7 per cent, and services rose from 6.8 to 7.2 per cent.

A number of factors supporting growth have been beneficial to the upward trends. Development of the investment environment helped triple industrial production last year. Improvements to meeting consumer demands and exports also continued.

An estimated 36.5 per cent of the investment capital allocated from the State coffer for the year was used through May. The amount of capital disbursed through official development assistance (ODA) channels was higher than the same period last year. Total outstanding national loans as of May 31 increased by 7.5 per cent higher against last December.

During the first six months, foreign investment reaches US$8.43 billion in registered capital, with FDI disbursement reaching $5.4 billion, according to the Foreign Investment Agency.

The Ministry of Industry and Trade reported output growth for 29 of the country's 33 key industrial products in the last six months against the same period last year.

Oil output increased more than 7 times, liquefied petroleum gas more than doubled, air-conditioners rose by nearly 46 per cent and machine tools increased by 45 per cent.

Total retail sales of goods and social services showed a 27-per-cent year-on-year increase.

A positive trend was also seen in exports, with many industrial products gaining over the same period last year. Experts said this was a good sign and provided a basis to forecast good export growth this year to compensate for the low gains from the mineral and gold export sector.

The MPI said that in the near future, exports would be strengthened and the domestic market would continue to be developed, creating a driving force for growth.

Efforts will be made to keep the prices of "sensitive" items such as rice, meat, gasoline and medicines stable.

The Viet Nam Food Association said that in the first half of June, Viet Nam exported nearly 200,000 tonnes of rice, bringing the total rice export to about 2.9 million tonnes for a turnover of $1.3 billion.

The Domestic Market Watch Team under the Ministry of Industry and Trade forecast that rice prices would remain at low levels, while the growing supply from new crops in the northern provinces would lead to stable prices.

The production of large quantities of food and pork would also likely stabilise in the coming months, it said.

Pork prices have reduced due to growing concern among consumers about blue-eared pig disease. Consumers have turned to alternative products such as beef and chicken. Forecasts show the pork price will continue to fall but other food prices will remain high.

According to the team, domestic petrol prices would remain stable and gas prices would fall with a decline in world prices. Steel prices were forecast to continue falling.

In June, the pharmaceutical market has been generally stable. Drug prices in public clinics and retail stores have been generally lower than private drugstores, according to the Ministry of Health.

The team reported that the continued heat wave would bring on diseases and increase the demand for drugs and treatments. However, a stable drug supply would help stabilise the market.

(Source: VNS)