Eight-month economic growth figures defy odds

08:48 | 03/10/2019 Economy- Society

(VEN) - At the August 2019 regular meeting of the government, Prime Minister Nguyen Xuan Phuc said the Vietnamese economy kept growing in all areas despite numerous difficulties.

eight month economic growth figures defy odds

In August, the consumer price index (CPI) increased slightly, by 0.28 percent. In the first eight months, the CPI grew 2.57 percent compared with the same period last year - this was the lowest eight-month CPI growth rate in the past three years.

The eight-month index of industrial production (IIP) was up an estimated 9.5 percent compared with the same period last year - this was a lower eight-month growth rate compared with 2018 but higher compared with 2016 and 2017. The purchasing power in the domestic market kept growing. Total retail sales of goods and revenue from consumer services in the first eight months reached an estimated VND3,200 trillion, up 11.5 percent compared with the same period last year, with a majority coming from retail sales of goods.

The eight-month export value rose 7.3 percent, reaching nearly US$170 billion. Exports by domestic companies grew an estimated 13.9 percent and for the first time accounted for more than 30 percent of total export value.

In the first eight months of 2019, about US$12 billion of foreign direct investment (FDI) was disbursed, an increase of 6.3 percent compared with the same period last year. Nearly 90,500 new companies were established nationwide in the first eight months with total registered capital exceeding VND1,150 trillion. Meanwhile, the number of businesses registered to suspend operations for a certain period of time was down seven percent, and the number of companies resuming operations was up 21.8 percent.

According to the Ministry of Planning and Investment, domestic demand and investment will be the two major factors boosting economic growth from now to year’s end. The industrial sector, especially processing and manufacturing industries, automobile, steel, oil refining, petrochemicals and electricity, will remain a major driving force of economic growth. The acceleration of public investment in infrastructure, especially major projects, will also create new impetus for economic growth for the rest of the year.

Hoang Chau