Inflation rate forecast below 2 percent this year

The National Financial Supervisory Commission has forecast that Vietnam’s Gross Domestic Product (GDP) will reach a year on year growth rate of  6.5 percent, core inflation will remain stable at 2.4 percent and inflation rate will reduce to below 2 percent.

Semiconducting component manufacturing at Japanese MTEX Company in Tan Thuan Export Processing Zone (Photo: SGGP)

Although the world economy has much fluctuated in the third quarter this year, it will not much affect Vietnam’s economic growth rate, according to the commission .
Next year, exports might grow better than this year because of the world economy recovery and free trade agreements.
International groups will continue moving their plants from China to other more stable nations comprising Vietnam. Consumption will increase thanks to low inflation rate and improved production and trading activities.
However, businesses especially small and medium ones will continue facing difficulties. Most of companies dissolving and going bankruptcy in the first half this year are of small scale with registered capital of below VND10 billion (US$444,900).

By Ham Yen – Translated by Hai Mien

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