Gov’t: Stronger economic impulse in Q2, 7% economic growth for second half

The Government regular meeting for April, Hà Nội, May 5, 2010 – Photo: VGP/Nhật Bắc

The forecast was made on Wednesday at the Government’s regular meeting for April in Hà Nội.

The Cabinet’s members spent one day long to review the overall socio-economic picture in April and the first four months, the implementation of the Government’s Resolution 18/NQ–CP on solutions of securing macro-economic stability, controlling inflation, and achieving the whole-year growth rate of 6.5%.

Higher growth in Q2

The Government said that Việt Nam continued gaining positive socio-economic achievements in the first four months thanks to the realization of Resolution 18/NQ–CP.

Industrial production was estimated at VND 62.67 trillion in April, up 13% against the same period last year, raising the four-month figure to VND 236.7 trillion, an increase of 13.5% - higher than the Government’s preset target of 12%.

The first four months normally coincided the country’s festival season, thus tourist, trade, and service activities took place busily nationwide. The total retail value of consumer goods and services approximately reached VND 122 trillion in April, or 1.9% higher compared to the previous month’s figure.

The consumer price index just slightly rose by 0.14% last month, the smallest number recorded during the one-year period.

So far this year, Việt Nam has welcomed 263 new FDI projects with the total registered capital of US $5.6 billion, an increase of 58.5% against the same period of 2009 in terms of capital volume.

The total export turnover in the reviewed period stood at US $20.16 billion, translating in an 8.9% increase compared to the earlier forecast of 6%. However, strong import also means high trade gap.

With the above data, the Government members all agreed that the gross domestic products (GDP) would expand around 0.4-0.5% in Q2 against the first one.

Some 7% economic growth rate for second half

Concluding the meeting, PM Nguyễn Tấn Dũng urged ministries, sectors and localities to strive for a 7% economic growth rate in the second half of the year and the overall target of 6.5% this year.

The Government chief also ordered his administrative agencies to tighten market management, especially price speculation in economic hubs of Hà Nội and Hồ Chí Minh City, in favor of macro-economic stability.

The State Bank of Việt Nam (SBV) was asked to lower the current interest rates and introduce more proper exchange rates. It also needs to submit to the Government a plan on the reform of commercial banks in line with market-oriented economic rules.

The import of luxurious commodities will continue to be banned in order to pull down the whole-year trade deficit to less than 20% and ease the payment imbalance.

The Ministry of Science and Technology must prepare a list of the national key products and submit it to the Government soon.

The Government will keep on social policies relating to poverty reduction, job generation, credit assistance to students, and health insurance.

PM Dũng also required ministries and localities to quickly move to the next step of the ongoing administrative reform by verifying and cutting down more unnecessary procedures.

He took the occasion to call on the public to join hands with the Government for stronger economic recovery.

By Hải Minh