Vietnam’ key indicators in 2011
Vietnam’s 2011 Gross Domestic Product (GDP) growth is estimated at 6%, the Consumer Price Index (CPI) rose 18.13% on year in December 2011, the local news provider Gafin reported.
The overall balance of payment surplus in 2011 is estimated around $2.5 billion, significantly improved from a deficit of $3.07 billion in 2010.
Export turnover reached $96 billion, making an on-year rise of 33% in 2011 or 3.3 times higher than the target set by the National Assembly at 10%.
The country’s trade deficit ratio is about 10.4% of the total export turnovers, lower than the Congress’ target and the objectives in the Government’s Resolution No.11 is below 18% and16%, respectively. Vietnam’s total retails and service revenues are estimated to rise 24% from a year earlier.
Forex market and exchange rate gradually getting stability. Credit structure shifted positive, non-cash payment rate is growing. Foreign currency positions of banks improved. Vietnam’s forex reserve in Q3/2011 rose to 7.5 week import equivalent from previous 3.5 weeks in Q1/2011.
State budget revenues in 2011 climbed 20.6% from 2010, surpassing 13.4% the target, resulting in reduce in State budget deficit to 4.9% and helping the public debt control to ensure the national financial security.
In 2012, the Southeast Asian country targets to give priority to curb inflation, stabilize the macro economy , sustain GPD growth at 6% and possibly to 6.5% associated with growth model innovation and economy restructure.
VietnamBusiness.asia / StoxPlus - December 28, 2011
Vietnam faces more economic woes this year
The country's recently announced statistics showed that the economy this year has run into more problems than in previous years.
At a two-day government meeting with provincial authorities on the National Assembly's resolution on socio-economic development and State budget that ended last Friday, the Ministry of Planning and Investment reported gross domestic product (GDP) in 2011 was forecast to grow 5.9 percent.
Minister of Planning and Investment Bui Quang Vinh said: "Economic growth has been affected by the country's efforts to contain inflation, stabilise the macro economy, restrict credit growth, and cut public investment."
Public spending remains high
According to the ministry, the total investment in 2011 is expected to reach VND870 trillion, 34.7 percent of GDP. The amount sourced from the State budget and government bonds sales has amounted to VND220 trillion, and the State credit some VND50 trillion.
The amounts reduced and transferred to other projects in need of funding total VND81.5 trillion, with over VND9.4 trillion of it coming from the State budget, government bonds and lottery revenue. Thanks to the capital cuts and transfers, an additional 1,053 projects have been finalised this year, taking the finished projects in the whole year to 4,400.
The ministry ascribed the decline in investment capital n the economy to the government policy to cut public investment in order to curb inflation, whereas businesses have been experiencing tough times.
However, at the recent meeting of the National Assembly (NA), the NA Finance and Budget Committee indicated a different view. The investment and development cost has still exceeded the estimate and increased by 15.1 percent, or VND23 trillion, a high level given the fiscal tightening and public investment reductions.
At the conference last Friday, the ministry said it had properly implemented the cost cutting campaign, with 10 percent of the regular expenses, or over VND3.8 trillion, trimmed.
Regarding this issue, the NA budget committee admitted the total State budget spending had surpassed the estimate by 9.7 percent despite the government's Resolution 11 on public spending reduction.
By Tu Hoang - The Saigon Times Daily - December 26, 2011