First quarter report from Vietnam Institute for Economic and Policy Research highlights a number of economic travails.
The Vietnam Institute for Economic and Policy Research (VEPR) has reported that GDP growth reached only 5.46 per cent in the first quarter of the year.
Its report, released on April 12, said that economic growth was disappointing due to lower industrial growth and less agricultural production.
The Purchasing Managers’ Index (PMI) of 50.7 points for the quarter reflected the relatively low expansion of manufacturing sectors.
Import turnover was down 5.1 per cent against the same period last year, while export turnover increased slightly, by 3.9 per cent, leading to a trade surplus of $700 million.
The budget deficit was estimated at 6.34 per cent of GDP; higher than the planned 5 per cent. More importantly, the possibility of controlling the deficit is quite modest.
Average interest rates were under pressure as the deposit rate reached the ceiling of 5.5 per cent per annum. As required by the State Bank of Vietnam’s Circular No. 36 on capital risk, commercial banks had to increase interest rates to meet credit growth.
Due to seasonal factors the real estate market saw slow movement in the first quarter in both Hanoi and Ho Chi Minh City.