Inflation Targets Likely to Be Achieved

The consumer price index (CPI) in September rose more than one percent, mainly due to the price increase in the service sector, including the new school year, but still lower than the CPI of the first 9 months last year. And the CPI of the remaining 3 months, based on the targets of 7 percent reported to the National Assembly, must be roundly 0.8 percent per month. As calculated in the previous years, the inflation target will be achieved this year.

 

"However, despite the positive signals of the socio- economy, it should not be neglected. For example, the inflation indicator has been taken to the round of 2.4 percent for 3 months but if it is neglected, the indicators could be more than one percent per month, leading the inflation rate of more than 7 percent per year," analyzed Minister Vu Duc Dam.

 

According to Minister Vu Duc Dam, there are many solutions in progress to remove difficulties for enterprises but not all of them are satisfactory. The numbers of newly established and operating companies have been increased nest month, and the number of this quarter is higher than the last quarter. However, it is necessary to consider the fact of how many companies stop working.

 

The currency rates are well maintained and stable. The credit is now growing. However, as stated in the last month, the increase in deposits was over 11 percent but the output increased by 6 percent. The GDP growth rate has been gradually increased in each quarter; the GDP of the third quarter is higher than of the first and second quarters. The GDP growth could reach 5.4 percent to 5.5 percent at the end of the year.

 

"Total social investment capital has increased, exceeding 6 percent; this figure is nor remarkable but in this context, it is acceptable," said Mr Dam. Through the reports of the international organizations, the competitive index of Vietnam has been raised, of which the macroeconomic stability index has been up 19 steps, specifically illustrated through the increase of 36 percent of the registered foreign direct investment.

 

In the social sector, the activities such as social safety and accidental prevention has been ensured and minimized. Specifically, the external economic results are positive; there are many trade agreements to open markets, such as the establishment of a free trade area with the EU, Korea, Customs Union and most recently, the TPP negotiations. There are a variety of purposes, but of which the main one is to open markets for the Vietnamese exports.

 

Minister Vu Duc Dam acknowledges that there are many policies relating to the real estate market, which have been proposed but slowly implemented in practices. This problem needs to be solved drastically. Based on the government's directions and guidelines, Prime Minister followed up the Ministries' implementation to remove each difficulty the companies face with.  

 

In response to the press about that the budget deficit ceiling will be raised, Minister Vu Duc Dam said that the Government has made a proposal of raising the deficit ceiling from 4.8 percent to 5.3 percent is correct. The government has discussed this issue. The main reason is that the huge investment is required next time. From Hanoi to Ho Chi Minh City to the remote areas, there are high investment demands for electricity, roads, schools and station, water, and waste sewage, etc. According to Resolution 11 and the directives of public investment, a series of invested works of Vietnam have been reorganized and tightened because of lacks of funding. Meanwhile, despite the economic growth at over 5 percent and many supporting solutions for the enterprises including tax extension and exemption and a number of other measures to support the state budget revenue of Vietnam, the increase of the budget has not met the desired spending as well as the actual needs.

 

Mr Vu Duc Dam also said that raising the deficit ceiling this time has included the evaluation and calculation of the pressures on the public debts. "When submitting the proposals to the National Assembly for the budget deficit ceiling raised from 4.8 percent to 5.3 percent, the government has taken full consideration in different concerns. The government has pooled all the ideas from the advisory bodies, then obtaining the experts and the people's opinion through the press. As proposed, the deficit ceiling rate of 5.3 percent is good enough to ensure the balance of the debt ceiling," stressed Mr Dam.