PM paints rosy economic scenario, warns of inflationary pressure

Exports & imports totaled over US$352 billion in value in the first nine months of 2018

Improved quality of life

The targets were included in the annual socioeconomic report for 2018 presented to the national assembly last month by Prime Minister Nguyen Xuan Phuc. According to the report, Vietnam’s gross domestic product (GDP) grew 6.98 percent in the first nine months of this year and the annual GDP growth is expected to exceed the national assembly’s 6.7 percent target. The annual consumer price index (CPI) is estimated to be below four percent in 2018, the third consecutive year it was kept under four percent; 2018 budget revenues are expected to be three percent higher than the target; budget revenues from imports and exports and crude oil decreased, while domestic revenues increased, accounting for nearly 82 percent of the total.

Exports and imports totaled more than US$352 billion in value in the first nine months of 2018 and are expected to reach US$475 billion at the yearend, up 11.7 percent from 2017. This includes US$238 billion worth of exports (up 11.2 percent, 3.2-4.2 percent higher than the target). Exports of the domestic sector increased 17.5 percent, while those of the foreign-invested sector grew 14.6 percent. Vietnam exported almost US$5.4 billion more than it imported in the first nine months of this year. E-commerce grew 30 percent yearly, on average.

The country’s economy, culture, society, environment, defense, security and foreign affairs have all gone in the right direction from 2016-2018; the economy has increased 1.3 times in terms of scale; per capita GDP increased US$440 during the period; and people’s lives have improved, said the prime minister.

Growth target for 2019

Prime Minister Phuc also acknowledged weaknesses and difficulties, among them inflationary pressure caused by exchange and interest rates, increased crude oil price in foreign markets and the requirement to implement a market price roadmap for electricity, education and health services, among others.

The prime minister said that in 2019, the government will continue to strengthen macro fundamentals, control inflation, focus on improving the investment environment, promote economic growth, and take advantage of the Fourth Industrial Revolution or Industry 4.0.

The prime minister said that under the leadership of the party and supervision of the national assembly, the government will instruct sectors and authorities at all levels to try their best to overcome the weaknesses, and strive to reach the highest achievements in 2019, contributing to the successful implementation of the 2016-2020 socioeconomic development plan.