Minister: Vietnam GDP Unlikely at 6.5 per cent This Year
Vietnam’s economic growth is unlikely to reach 6.5 per cent this year as exports and FDI are being hurt by the global economic downturn, according to Minister of Planning and Investment Vo Hong Phuc.
“In the current context we should be prepared for below 6.5 per cent growth rate,” Minister Phuc noted.
When submitting the growth to the national assembly for approval, we recognized the issues, however, to ensure jobs to be generated for locals, GDP growth of 6.5 per cent must be achieved, Mr Phuc said.
The right thing for the government to do now is directing the State Bank of Vietnam and commercial banks to coordinate to subsidize 4 per cent interest rates of loans for local small and medium enterprises to create jobs for workers, Phuc emphasized.
“Shift should be made from investments for housing projects for students and low income earners because it will take time,” Phuc added.
To boost FDI investments and increase attractiveness of Vietnam toward foreign investors, we should focus on disbursing the FDI-invested projects after the country reported a record registered capital of FDI at US$64 billion, the minister said.
The MPI said FDI was down 8.5 per cent on year to US$200 million in January due to the global economic slowdown. However, the ministry forecasts that outlook will be brighter in February.
According to GSO, Vietnam’s exports dropped 24.2 per cent on year to US$3.8 billion and down 18.6 per cent on month due to global shrinking consumption demand.
The IMF forecast Vietnam’s economy will ease at 5 per cent while the World Bank is optimistic about the country’s GDP growth of 6.5 per cent. (Youth)
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