An electronic parts production chain at Anam Electronics Vietnam Co., Ltd (Photo: VNA)
Hanoi (VNA) – The National Financial Supervisory Committee (NFSC) has anticipated that Vietnam’s gross domestic product (GDP) in 2017 will be more than 6.7 percent.
NFSC said the Government’s
policies to improve investment climate and promote businesses posted positive
results and fuelled GDP growth through increasing
demand.
Consumption and investment
demand will increase significantly in the fourth quarter of this year once the
disbursement of construction capital was stepped up, together with anticipated
improving exports thanks to advantageous developments in global trade.
“Following impressive
growth in the second and third quarters, GDP growth will touch 7.5-7.5 percent
in the fourth quarter of this year,” NFSC said in the report, adding that
growth for the full year would reach more than 6.7 percent.
NFSC also saw a stable
trend in prices of goods in the remaining months of this year.
“If there are no sudden
fluctuations in prices of public services in the remaining months, inflation in
2017 will increase at just 3 percent,” the report said.
At a meeting early this
month, the Vietnamese Government said it was determined to achieve the target
of 6.7 percent GDP growth in 2017, urging comprehensive measures and hastened
efforts to fulfill this goal.
After posting GDP growth
rate of 6.7 percent in the third quarter of this year, the Vietnamese economy
must grow at a minimum of 7.31 percent in the last quarter to achieve its goal.
According to Duong Manh
Hung, Deputy Director of the National Account System Department under the
General Statistics Office, NFSC’s forecast had merit.
There were new stimulators
for economic growth in the last quarter, such as visa exemption for tourists
from five European countries, anticipated loan interest rates cuts, increase in
credit growth and ministries’ efforts to reduce business prerequisites and
fees, Hung said.
NFSC’s report said there
was room to cut interest rates, given not-too-high exchange rate pressure and
under-control inflation.
In the first nine months of
this year, loan interest rates decreased slightly by 0.5-1 percent, especially
for prioritised sectors.
International organisations
were upbeat on Vietnam’s economic growth this year, but their projections were
mostly lower than the Government’s targets.
The World Bank East Asia
and Pacific Economic Update on October 4 released their projected GDP growth
rate for Vietnam in 2017, which was 6.3 percent.
The Asian Development Bank
said in the Asian Development Outlook Update in late September that Vietnam’s
economic growth would also be at 6.3 percent this year, 0.2 percentage points
off from the previous forecast.
HSBC early this month
revised upwards its forecast for the country’s economic growth to 6.6 percent.-VNA