VINACHEM

VietnamnetBridge: Minister of Planning and Investment (MoPI) Bui Quang Vinh has reassured the National Assembly session underway in Hanoi that 2013’s targeted 5.4% GDP growth is well within reach, citing concrete evidence.

Speaking on November 1, Vinh stressed the MoPI’s General Statistics Office (GSO) has scorned excess optimism, considering ongoing economic difficulties.

The GSO reported the national economy grew by 5.14% in 2013’s first three quarters, slightly higher than last year’s 5.1%.

Vinh said the reliable quarterly improvements in GDP growth suggest an economy on track to recovery. From Q1’s 4.76%, GDP growth stepped up to 5% in Q2, 5.54% in Q3, and an expected 5.6–5.7% in Q4. Vietnam’s 2013 GDP growth rate as a whole is estimated at 5.4%.

The processing and manufacturing industry has weathered economic storms, recording 6.8% growth during 2013’s first nine months. Its export value increased 15.7% and is expected to hover around 15% by year’s end.

The Index of Industrial Production (IIP) also improved on a quarterly basis, backed up by more incoming foreign direct investment (FDI) capital and official development assistance (ODA) disbursement.

Six FDI projects, each worth more than US$1 billion, were licensed between January–September 2013, pushing the reviewed period’s total registered FDI capital beyond US$15 billion and far exceeding the US$13–14 billion target set for the entire year.

Impressive imports and exports have helped the economic recovery along. Defying recent trends, the State economic sector’s exports grew by 4.4%.

Imports rose 15.5%, mostly courtesy of input material, machinery and equipment for production purchases.

Taken together, the statistics indicate the economy has bottomed out and recovery’s green shoots are poking through. More time will be needed to achieve sustainable growth.

Minister Vinh said meeting the 5.4% growth target will depend on the government’s performance during the rest of 2013 as well as efforts from ministries, agencies, and localities. He remains confident the 5.4% goal is realistically achievable.