09:49 | 27/04/2016 Society
(VEN) - The Vietnamese economy grew by 5.46 percent in the first quarter of this year, a 0.66 percent decrease over the same period last year, which is however not a major concern, according to a first quarter macro-economic report published by the Vietnam Institute for Economic and Policy Research (VEPR).
Industrial production became a highlight in the Vietnamese economy in the first quarter of this year
Ground for growth
According to the VEPR’s report, the economic growth in the first quarter experienced a 0.66 percent fall for the first time over the past five years . The industrial sector failed to meet expectations, just registering a quarterly 6.72 percent increase, in addition to decreased trading and export activities. The first quarter’s total export value just hit US$37.7 billion, a 3.9 percent increase over the same period last year. One of the causes for that was the gloomy economic situation in importing countries.
Some of economic targets for the first quarter might have been set at much higher levels than they should be, said economic expert Dr. Vu Dinh Anh.
Despite achieving lower economic growth than expectations in the first quarter, the economic restructuring has provided the ground for sustainable growth in the near future, said former Minister of Industry and Trade Truong Dinh Tuyen.
The report mentioned an issue from the domestic economy in the first quarter that deposits abroad amounted to US$7.3 billion, while the foreign currency status of commercial banks did not change much. This was unusual and should be monitored closely, says the report.
Concerns over increased numbers of dissolved enterprises
About 22,000 enterprises were dissolved in the first quarter, a 24 percent increase over the same period last year, equivalent to 80 percent of the newly established enterprises, according to economic experts.
A newly established enterprise may need several years to develop while a dissolved enterprise immediately disappears, said former Director of the Development Strategy Institute Luu Bich Ho.
Economic expert Le Dang Doanh explained that 22,000 enterprises were dissolved largely due to annual high interest rates of 8-9 percent, their austerity policies, and increased fees and charges.
The gross domestic product (GDP) grew by 5.46 percent in the first quarter, a 0.66 percent decrease over the same period last year, marking the slowest quarterly growth over the past five years.