Prime Minister Nguyen Xuan Phuc (middle) (Source:VNA) At the event, the PM hailed positive signals of theeconomy, including macro-economic stability, low increase in consumer productindex (CPI) in the first three months, a 3 percent credit growth, a 12.8percent rise in export to upwards 43 billion USD, foreign tourist arrivals numbering3.2 million, and registered foreign direct investment topping 2.9 billion USD.
During the first quarter, the State budget collectionwas equivalent to 23.4 percent of the estimate, up 13.5 percent annually. Morethan 26,500 new enterprises were established, up 11 percent in number and 45.8percent in capital to 270 trillion VND (11.3 billion USD).
The Nikkei Vietnam Manufacturing Purchasing Managers’Index (PMI) rose to a 22-month high of 54.6 percent, higher than March’s 54.2percent and ASEAN’s average 50.9 percent.
According to the provincial competitiveness indexrecently released by the Vietnam Chamber of Commerce and Industry (VCCI), thedomestic business climate has continued improving with 51 cities and provinces climbingup the ranking.
However, he also pointed out low GDP expansion of 5.1percent in the first quarter, which was attributable to low growth of the industryand construction sectors due to failure to accomplish set plans by oilexploitation and the processing industry.
He said disbursement of public investment was only 12.4percent of the estimate in the first quarter, lower than the 16 percent raterecorded in last year’s same period.
Other concerns include slow equitisation of State-ownedenterprises, divestment, road accidents, fires, deforestation, and child sexabuse.
As the US Federal Reserve plans to hike interest ratesbetween now and the year’s end and 2018 and the new US administration favourstrade protectionism, Vietnam’s exports and inflation are predicted to be hurt.Furthermore, the country is liable for a debt worth additional 4.56 trillionVND (198.2 million USD), he said.
The government leader underscored the need to makethorough and flexible response to trade and monetary policies as well asclosely track the economic restructuring, especially commercial banks, andimprove economic capacity in terms of technology and management.
He also stressed the necessity to speed up the mobilization of investmentcapital in society to spur growth.
Also in the morning, the government listened to thematicreports on the fourth industrial revolution by Minister of Science andTechnology Chu Ngoc Anh, experts and researchers from the Vietnam Software andIT Services Association.
Cabinet members gave their feedback on the NationalAssembly’s draft resolutions regarding notary public offices and adjustment ofemployers’ deposits into unemployment insurance fund.-VNA
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