Hanoi (VNA) – The socio-economic situation in July and seven months of this year remained stable, with numerous bright spots, Minister and Chairman of the Government Office Tran Van Son told a press conference in Hanoi on August 5. In the first seven months, there were 131,900 enterprises entering and re-entering the market, which was higher than the number of those exiting the market.

Inflation on downward trend

According to the Ministry of Planning and Investment, the socio-economic situation in July was better than in June, contributing to the overall seven-month results thanks to the drastic and effective directions by the Government and the Prime Minister. Minister Son said inflation continues going down while that in many countries remain at a high level. The average Consumer Price Index (CPI) in the first seven months increased by 3.12% compared to 3.29% in the first six months, 3.55% in five months, 3.84% in four months, 4.18% in three months, 4.6% in two months, and 4.89% in January. Agriculture continued to see many bright spots and served as a solid foundation of the economy. The seafood output in July increased by 2.6%, compared to the 1.9% in January-July. Moreover, the export of agro-forestry-fisheries reached over 29 billion USD in seven months, with vegetable and fruit exports alone earning 3.2 billion USD. During the period, Vietnam produced over 24.1 million tonnes of rice, meeting domestic demand, and exported more than 4.83 million tonnes for 2.6 billion USD, up 18.7% in volume and 29.6% in value. The projected annual rice production was around 43.1 million tonnes, marking an annual increase of 452,000 tonnes, with an estimated export of 7.5 million tonnes. In the domestic market, the total retail sales of goods and services in July increased by 1.1% month-on-month and 7.1% year-on-year. For the first seven months, the figure climbed by 10.4%. As much as 267.73 trillion VND (11.2 billion USD) in public investment were disbursed in seven months, or 37.85% of the plan, The total registered FDI in July exceeded 2.8 billion USD, marking a monthly rise of nearly 9%. On a seven-month calculation, the figure rose by 4.5% to 16.24 billion USD. Vietnam remained an attractive destination for foreign investors, Son elaborated.

Priority given to three growth pillars

Apart from achievements, Son said Government members also acknowledge existing difficulties and challenges, including hard access to capital and falling number of orders. The demand in major and traditional markets has continued to decline. The industrial sector is showing signs of recovery, albeit at a slow pace. In face of such, Prime Minister Pham Minh Chinh ordered focusing attention on measures to ease difficulties in production and trade, propel growth while maintaining macro-economic stability, controlling inflation, ensuring political stability and social order, and stepping up external relations. He called for accelerating growth, especially the three pillars of consumption, investment, and export. The monetary policy should be performed proactively, flexibly and effectively, with suitable measures such as lowering interest rates, especially lending rates, restructuring debts, deferring debt payments, increasing credit availability, and appropriately expanding the money supply, he said. Ministries, agencies and localities were assigned to create livelihoods for residents, ensure major balances of the economy, deal with localities’ suggestions, especially those related to social housing, implement the 120 trillion VND credit package along with the socio-economic recovery and development programme and the three national target programmes./.