Ministry projects cross-sector growth

HA NOI (Biz Hub)— Viet Nam’s GDP was forecast to rise 5.5 per cent next year while CPI was to increase 7 per cent, the Ministry of Planning and Investment said.

In a document containing guidelines on setting up socio-economic development plans in cities and provinces next year, the ministry forecast a number of economic indices in the second half of the year.

This year, accordingly, Viet Nam would run a US$9 billion trade deficit as it was expected to reap $127 billion from exports, up 10.9 per cent over last year, and it was foreseen to spend $136 billion to import goods and services, up 19.5 per cent.

Index of Industrial Production (IIP) was expected to surge from 5.5-5.7 per cent this year, driven by stable growth of petroleum, electricity, cement, steel and iron, fertiliser, garments and textile sectors.

The agriculture, forestry and fisheries sector was seen to have continued facing many difficulties this year but it would meet the set target of 2.8 per cent growth, including 2.7 per cent growth of agriculture, 5.8 per cent growth of forestry and 2.7 per cent increase of fisheries.

Services and retail sales are expected to increase by 6.3 per cent and 16 per cent this year respectively.

Under the ministry’s calculation, total public development investments this year would be equal to 29 per cent of GDP.

Earlier, the World Bank forecast Viet Nam’s GDP would reach 5.3 per cent while HSBC saw the country’s GDP rising to 5.1 per cent and City Bank predicted GDP growth would be 5.2 per cent this year.

The ministry said the country would focus on restructuring the economy to increase its effectiveness, ability and competitiveness in the months to come.

To the end, the ministry would submit the plan to the Government this September. The Prime Minister would assign duties for ministries and localities based on the approved plan before November. — VNS