Vietnam aims for 6% growth this year


HANOI: Vietnam’s government is pushing for economic growth of about 6% this year, with Prime Minister Pham Minh Chinh urging more spending to spur domestic activity.

Gross domestic product growth of 6% was the “best case” scenario chosen by the cabinet, according to statements on the government’s website, citing a meeting chaired by the premier.

The worst-case scenario was for a 5% expansion, it said.

The government agreed to “prioritise growth, especially focusing on industrial development,” including manufacturing, according to one of the statements.

Chinh ordered ministries to accelerate disbursement of public investment, in line with International Monetary Fund (IMF) recommendations

The government’s latest projection comes a day after it reported that gross domestic product (GDP) growth in the first nine months of 2023 averaged only 4.2%, even after an acceleration in the third quarter.

Vietnam’s official growth target is 6.5%.

The trade-reliant economy must grow by 10.6% in the fourth quarter to hit 6% for the full year, according to one of the statements.

A 7% expansion next quarter will bring the average to 5% this year. Vietnam’s GDP grew about 8% in 2022.

Although the country’s exports returned to growth in September – halting a six-month slump – the nine-month average remained in negative territory.

The IMF’s executive board recently said the economy needs fiscal support to boost activity, given limited capacity for monetary policy to make a difference.

Vietnam’s central bank has cut borrowing costs four times this year. — Bloomberg

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

GREEN GROWTH PLAN
Maxis 3Q24 profit up 28%
Better for ringgit to rise gradually rather than skyrocket
Short-term pain, long-term gain
BiiB makes big strides in running
5G saga transmits mixed signals
Lane 23 rhythm of the night
Westports quarterly earnings grow on transhipment business
99 Speed Mart 3Q numbers driven by outlet expansion
Bonds that entice

Others Also Read