Vietnamese economy is stable: financial regulator

15:14 | 07/08/2015 Society

Vietnam’s economy is stable with solid growth in the first seven months of 2015, the National Financial Supervisory Commission (NFSC) has said in its latest report.

Vietnamese economy is stable: financial regulator

The regulator cited low inflation, a stable financial market and decent credit growth as some of the reasons for its assessment.

According to the NFSC’s projections, economic growth for the whole year will likely reach 6.5% while core inflation, which excludes goods whose prices are volatile and regulated by the government, will be kept at around 3%.

Data from the General Statistics Office shows that Vietnam’s economy expanded by 6.28% in the first half of the year while core inflation in the seven months of 2015 was 2.22%.

The NFSC also said that total yearly revenues would meet the government target despite lower oil revenues due to falling prices.

As of July 15, revenues met 52.3% of the year’s target, lower than the 57.3% from the same period last year, with oil revenues plunging 32.5%.

However, domestic revenues rose 15.1% from a year earlier and are expected to continue improving in the remaining months of the year.

The NFSC added that the currency market was operating in a stable manner, thanks to the State Bank of Vietnam’s consistent policy on exchange rates, an improving trade balance, and strong remittances and foreign investment disbursement.

After two rounds of devaluing the Vietnamese dong, the reference exchange rate is currently set at VND21,673 to one US dollar and is expected to stay the same until the end of the year.

Vietnam’s trade deficit in June was estimated at US$140 million, significantly lower than an initial estimate of US$700 million, according to the General Department of Customs.

The NFSC, however, also warned that the exchange rate would face pressure in the final months of 2015 because of external factors such as a stronger dollar and the Fed’s anticipated rate rise, and rising domestic demand for foreign currency to import machinery for manufacturing./.


 Source: nhandanonline