According to MoPI, the total export turnover in 2010 may rise 17%, higher than the year plan of 6%; trade deficit will be below 20% of total export turnover, helping increase the foreign currency source for the state. The consumer price index (CPI) is expected to jump by only 0.06% in July and it would be 8.67% in Jan-Jul, a rate consistent with current conditions and not cause macro instability.

The MoPI’s comments are based on positive economic situation in first seven months as well as the prospect of the economy in Vietnam and the world in coming time.

Industrial production value in Jan-Jul was estimated to increase 13.5% year on year, total seafood output was up 4.7%, export turnover up 17.5% y-o-y, reaching $38.3 billion, and imports also up 25.5%, marking high levels over previous period. Therefore, trade deficit in Jan-Jul was at $7.5 billion, or 19.45% of total exports.

The strong restoration of some service sectors is a worthy of note. Total retail turnover and services in Jan-Jul was estimated to rise 26.4% year on year. The total number of international arrivals to Vietnam was up to 34.9%. The transport of goods and passengers increased 10-15% y-o-y.

Also in first seven months, the country had nearly 50,000 enterprises getting business registration certificates with a total pledged capital of 291 trillion dong, up 0.6% in the volume and 16% in value yoy. In July only, the figure was 7,000 firms with total capital of nearly 40 trillion dong.

These figures partly showed the confidence of entrepreneurs in business prospects.

In a bid to support the economic growth, the total amount of money being poured to the market also increased sharply. By July 31, the total payment means and credit increased approximately 13 percent compared to December, 2009

Disbursed capital for investments from the state budget was equal to 62% of the year plan (while the figure was about 50% in previous years), actualised ODA capital at 67% and FDI capital disbursement increased 1.6% year on year.

Thoi Bao Kinh Te Vietnam - August 9, 2010