Viet Nam is likely to achieve a GDP growth rate of 6.4 percent in 2015 in spite of impacts from China’s yuan devaluation and low oil prices, according to the Ministry of Planning and Investment (MoPI).
Minister of Planning and Investment Bui Quang Vinh was quoted as saying that amidst complicated developments in the global and regional markets, the Government’s solutions and measures did work, properly controlling the macro-economy and putting it back on track with positive outcomes.
Economists pointed to the fact that Viet Nam chiefly imported raw materials and equipment from China. Hence, the neighbour's yuan devaluation as well as globally low oil prices will lower input costs while prompting higher competitiveness, thus spurring production and economic growth.
However, Vietnamese products would face the competition with Chinese cheap products, especially consumer commodities.
In August, the index of industrial production (IIP) fell 1.3 percent month-on-month but went up 9 percent year-on-year.
In the first eight months, IPP increased by 9.9 percent, higher than the same periods years ago. Export turnover valued around US$14.5 billion, a month-on-month rise of 2.3 percent and a year-on-year surge of 9.5 percent.
Meanwhile, total retail sales and service revenues were estimated to grow 10.1 percent in comparison with the same period last year. Recovering purchasing power was expected to boost production, business, and economic growth.
In August, 9,301 enterprises were set up with a total registered capital of VND55.2 trillion, up 41 percent in number and 41.9 percent in value.
However, in the rest of the year, the economy was forecast to encounter numerous difficulties and challenges, including sharp declines in oil and commodity prices and complicated fluctuations in the global financial market following the yuan devaluation.
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