Vietnam economy recovers, but high growth uncertain

Reading Time: 2 minutes

Hanoi-Ho-Chi-MinhIt appears Vietnam’s economy may be moving out of the emergency room. A recent report by the Ministry of Planning and Investment (MPI) has revealed that runaway inflation is being tamed, while foreign direct investment continues to pour in, with industrial production bouncing back and export earnings on the rise.

However, analysts remain cautious over whether these fundamentals will lift the economy to the government’s projection of 5.5 per cent this year due to rocky external factors.

The MPI’s seven-month report for 2013 is nonetheless measuring a robust pulse. According to the report, Vietnam’s consumer price index increased 2.68 per cent in July compared to December 2012, a record low compared to the period between 2044 and 2011.

Vietnam’s runaway currency, the dong, has long tempered optimism for the country’s economy, which appears at the whim of greater instability. However, the government is projecting a target of 6.8 per cent inflation for 2013 on the back of greater macro-stability.

One of these guiding factors is that industrial production has finally come back, increasing 4.5 per cent in the first quarter, 6 per cent in the second quarter and 7 per cent in July. The boosted manufacturing sector in turn brought in $77.74 billion until July in exports, an increase of 14.3 per cent year on year.

For the first seven months, Vietnam opened 8.4 per cent more businesses year on year. The country generated 849,600 jobs in the same period, meeting 53 percent of the annual target.

Moreover, Vietnam has remained a top foreign direct investment darling of the region, attracting $ 11.91 billion in the period ending in July, up 19.6 per cent year on year.

While the government’s GDP projection is 5.5 per cent, analysts expect the economy to expand by 5.1 to 5.2 per cent in 2013, with the slowdown in China and continued uncertainty in the eurozone to blame. The US Federal Reserve’s decision earlier this year to scale back on its debt-buying programme has also soured emerging market equities worldwide, causing a slump in optimism.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

It appears Vietnam’s economy may be moving out of the emergency room. A recent report by the Ministry of Planning and Investment (MPI) has revealed that runaway inflation is being tamed, while foreign direct investment continues to pour in, with industrial production bouncing back and export earnings on the rise.

Reading Time: 2 minutes

Hanoi-Ho-Chi-MinhIt appears Vietnam’s economy may be moving out of the emergency room. A recent report by the Ministry of Planning and Investment (MPI) has revealed that runaway inflation is being tamed, while foreign direct investment continues to pour in, with industrial production bouncing back and export earnings on the rise.

However, analysts remain cautious over whether these fundamentals will lift the economy to the government’s projection of 5.5 per cent this year due to rocky external factors.

The MPI’s seven-month report for 2013 is nonetheless measuring a robust pulse. According to the report, Vietnam’s consumer price index increased 2.68 per cent in July compared to December 2012, a record low compared to the period between 2044 and 2011.

Vietnam’s runaway currency, the dong, has long tempered optimism for the country’s economy, which appears at the whim of greater instability. However, the government is projecting a target of 6.8 per cent inflation for 2013 on the back of greater macro-stability.

One of these guiding factors is that industrial production has finally come back, increasing 4.5 per cent in the first quarter, 6 per cent in the second quarter and 7 per cent in July. The boosted manufacturing sector in turn brought in $77.74 billion until July in exports, an increase of 14.3 per cent year on year.

For the first seven months, Vietnam opened 8.4 per cent more businesses year on year. The country generated 849,600 jobs in the same period, meeting 53 percent of the annual target.

Moreover, Vietnam has remained a top foreign direct investment darling of the region, attracting $ 11.91 billion in the period ending in July, up 19.6 per cent year on year.

While the government’s GDP projection is 5.5 per cent, analysts expect the economy to expand by 5.1 to 5.2 per cent in 2013, with the slowdown in China and continued uncertainty in the eurozone to blame. The US Federal Reserve’s decision earlier this year to scale back on its debt-buying programme has also soured emerging market equities worldwide, causing a slump in optimism.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid