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Economy grows 6.52 percent amid global crisis

In Uncategorized on September 30, 2008 at 6:53 pm

Hanoi (VNA) – A cabinet meeting was wrapped up on September 30 with a report showing that Vietnam ’s GDP has continued to grow despite the global economic crisis while the consumer price index hit a 17- month low in September.

The two-day regular meeting, chaired by Prime Minister Nguyen Tan Dung, heard Minister of Planning and Investment Vo Hong Phuc report that the gross domestic product grew 6.52 percent in the first nine months of the year . He said the rate was slower than the same period last year, but showed encouraging signs in the wake of the world’s adverse financial developments.

The service sector posted a growth rate of 7.23 percent and export revenues continued their rapid growth, recording a 39 percent year-on-year increase to 48.6 billion USD despite tough competition for market share.

The top ten list of hard currency earners in the first nine months of the year include crude oil with 8.8 billion USD in export revenues and apparel with 6.83 billion USD.

Trade deficits have been gradually reduced, a fact highlighted by the September figure which hit a nine-month low at 500 million USD.

Foreign direct investments in the past nine months have increased five-fold compared to the same period last year, with FDI disbursement increasing by 37 percent.

Progress has also been made in the agricultural sector as the paddy production output is expected to reach 38.6 million tonnes this year, representing a year-on-year increase of 2.6 million tonnes.

As a result, by mid September tax revenues met 90.5 percent of the yearly target, reaching 292.3 trillion VND.

Most worthy of note was a CPI growth rate of just 0.18 percent in September, the lowest rate for 17 months.

However, cabinet members admitted that it will be difficult to achieve the GDP growth target of 7 percent for the entire 2008 as to do so, the national economy would need to record a growth of 8.1 percent in the fourth quarter.

The Government’s monetary polices, which aim to control inflation, would also have an adverse impact on the economy to some extent.

Experts also warned of complex developments relating to the CPI in the remaining quarter due to the year-end shopping season which usually hikes prices.

The Prime Minister therefore called for greater efforts to curb inflation as the year’s top priority, while stabilising the macro economy, ensuring social welfare and maintaining economic growth.

He instructed relevant agencies to tackle problems on investment supply for production and businesses, with emphasis placed on medium and small-sized enterprises by allowing them preferential tax and bank loan interest rates.

Dung ordered due punishment of any attempt at goods speculation, production of fakes or trade fraud.–

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