Economic growth predicted at 6.4% by year-end

09:57 | 10/09/2015 Society

The growth rate of Vietnam’s economy may still reach 6.4% by the end of the year, despite certain impacts from the recent yuan devaluation and fluctuations in oil prices, according to the Ministry of Planning and Investment (MPI).

Economic growth predicted at 6.4% by year-end

Vietnam's economy has achieved many positive results in the first eight months of 2015.

The national economy continues on the path to recovery and has recorded many positive results thanks to the Government’s policies and measures taken in order to control the macro-economy, said MPI Minister Bui Quang Vinh.

As explained by economists, Vietnam is a large importer of China with key import products including materials, machinery and equipment. Hence, the yuan devaluation and drops in oil and petrol prices will lead to a reduction in input cost and commodity prices as well as improve the competitiveness of products, contributing to boosting production and economic growth.

This is evidenced by several growth indicators in August, with the industrial production index and export revenues up 9% and 9.5% respectively against the same period of 2014. Revenues from retail and consumer goods in the first eight months of 2015 saw a year-on-year increase of 10.1%, higher than the previous year’s 7.8% increase, which has shown a relatively positive recovery in purchasing power and aggregate demand, thereby giving a boost to production and economic growth.

August saw over 9,300 newly-established enterprises with a total registered capital of VND55.2 trillion (US$2.48 billion), up 41% in the number of businesses and 41.9% in registered capital against the previous month.

Despite such positive signs, the economy expects to face numerous difficulties and challenges in the remainder of 2015, including sharp decreases in the world’s crude oil and commodity prices and complicated proceedings of the world’s financial market as a result of China’s yuan devaluation./.


Source: nhandanonline