Economy bouncing back

Growth began to bounce back in Q2/2012 with the growth rate of 4.66% compared to 4% in Q1. Industry-construction sector increased 4.52% against 2.94% in Q1 and service sector grew 5.83% against 5.31% in Q1. Only agriculture-forestry-aquaculture area slightly decreased (2.78% against 2.84% in Q1).

Total retail sales of goods and services climbed up steadily from 4% in January, 4.4% in February, 5% in March, 6.1% in April, 6.4% in May, 6,5% in June.

Inventory rate began to fall down gradually from 34.9% in March, 32.1% in April, 29.4% in May, and 25% in June.

Interest rate also dipped quickly from 14% to 9%) and credit growth is rising again.

Other positive signals include shrinking trade deficit, contributing to improving payment balance.

Despite the aforesaid positive signals, challenges still remain. The growth rate in the first half of 2012 is still low compared to 6.18% and 5,63% of the same period of 2010 and 2011, respectively.

To realize the whole-year target of 6- 6,5%, strong efforts are needed in the second half of 2012 to achieve the growth rate of 7.29- 8.21%. Solutions enshrined in the Resolution 13 must be drastically followed, focusing on settling bad debts and low purchasing power.

By Hai Minh