The minister was speaking at the regularcabinet meeting in Hanoi on June 27 to review the country’ssocio-economic performance during the first half of the year.
Hisstatement was backed up with positive readings of the mainmacro-economic indicators released by the General Statistics Office(GSO) earlier the same day.
The nation’s gross domestic productsgrew 4.9 percent year-on-year in the half past of this year. The growthrate means Vietnam ’s economy has expanded at a slower pace comparedto the same period last year, but growth was on an upward trend on aquarterly basis.
The Consumer Price Index ( CPI ), which broadlyreflects inflation, has either fallen or increased just slightly sinceMarch, after rising for seven consecutive months.
The CPI in June increased just 2.4 point compared to December, the lowest rise for the period in the last 10 years.
This indicated inflation would no longer be a big concern this year andthe country might end up with lower inflation rate compared to 2012.
Export continued to enjoy steady growth with total earnings over thelast six months reaching 62.1 billion USD, 16.1 percent higher than thesame period last year.
While there were some positive signs,cabinet members remained cautious that the economy was still latent withrisks of instability.
Despite interest rate cuts, credit accesswas still very challenging for the business community because there wasstill no viable solution to the bad debt problem.
A number of localleaders suggested the Government come up with policies to boostconsumption and investment which in turn would propel production.
Le Hoang Quan, chairman of the Ho Chi Minh City People’s Committee, thecountry’s biggest economic hub, said the banks still had healthydeposits, so the Government should put in place loose monetary policiesto enable struggling enterprises to access credit.
Mai Van Ninh,Party Committee Secretary of central Thanh Hoa province said specialattention should be paid to enterprises working in the sector of capitalconstruction which were faced with high inventories.
Theproduction of building materials could not be revived while the housingmarket remained frozen, said Minister of Construction Trinh Dinh Dung,stressing the solution is to boost social housing projects to createdemand.-VNA