Report from National Financial Supervisory Committee reveals Vietnam's economy on the right track.
Vietnam's economic growth has recovered sharply in terms of investment and consumption, according to a report released recently by the National Financial Supervisory Committee (NFSC) on the macro economy. Total development investment in the first quarter of this year increased 9.1 per cent compared with the same period of last year, where it increased just 3.8 per cent year-on-year. Credit growth as at April 20 had increased 2.78 per cent compared with the same period of 2014.
Meanwhile, total retail sales and services revenue in the first four months (excluding price effects) increased 8 per cent. In the first four months of 2014 total revenue increased 5.5 per cent year-on-year.
The country's economy will enter a new period with rapid and stable growth, the NFSC report stated. Challenges remain, however, as certain sectors has experienced slower growth. Agriculture, forestry and fisheries growth in the first quarter was just 2.14 per cent year-on-year, against 2.37 per cent last year.
Exports also exhibited signs of slowing down. Export turnover in the first four months was approximately $50.1 billion, an increase of just 8.2 per cent year-on-year and less than the 16.9 per cent growth recorded in the first four months of 2014. Import turnover reached nearly $53.1 billion, for a trade deficit of some $3 billion during the period.
Inflation was maintained at a low level, the report noted. The CPI in April increased just 0.14 per cent compared with March and 0.99 per cent against April 2014. Core inflation has been maintained at 2 to 4 per cent over the last 12 months. The CPI in May is forecast to increase 0.17 per cent against April and 0.96 per cent compared to May 2014.