GDP growth expected to reach 6.3 percent in 2016

Vietnam’s Gross Domestic Product (GDP) was estimated to reach 5.93 percent in the first nine months of 2016 and expected to hit 6.3-6.5 percent this year, reported deputy minister of Science and Technology Dao Quang Thu at a meeting yesterday.

Ben Thanh market in HCMC (Illustrative photo: SGGP)

The third quarter alone saw the GDP growth of 6.4 percent, Mr. Thu reported to Deputy Prime Minister Vuong Dinh Hue who was chairing the third quarter regular meeting by the National Financial and Monetary Policy Consultation Council which he is chairman.

Agricultural and forestry sector began recovery with the growth rate of 0.65 percent from minus 0.18 percent in the first half this year.

Consumer price index in September increased 0.54 percent over August, 3.14 percent versus December 2015 and 3.34 percent over the same period last year.

Inflation was curbed low during the first nine months. It is forecast to be controlled below 5 percent as per the National Assembly’s target, he said.

Deputy Governor of the State Bank of Vietnam Nguyen Thi Hong said that inflation was stable. In September, it was up 1.58 percent against December and 1.85 percent over the same period last year.  Monetary management was basically steady.

With that inflation condition, there is room to change goods and service prices, she added.

Some members of the council proposed the ministry to build a set of norms to clearly estimate investment efficiency and the economy’s status quo. The government and ministries should specify the reasons of economic growth slowdown for the last time to have solutions to get the target of 2016.

In addition, they should have measures to improve domestic consumption demand, boost exports and focus on solving difficulties and reducing costs for businesses.

Concluding the meeting, Deputy Prime Minister Vuong Dinh Hue asked the council’s members to continue keeping a close eye on international financial changes to discuss and consul for the Government about running the economy.

From the members’ suggestion, he required relevant ministries to consider the removal of reward interest rate ceiling for the term of six months, review preferential credit packages on the basis of defining fiscal policies and tools of the banking system and study an increase in deposit interest rate for medium and long terms of commercial banks.

By Lam Nguyen – Translated by Hai Mien

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