ANN/THE STAR – The Vietnamese government is striving for a six per cent economic growth this year.
Prime Minister Pham Minh Chinh has encouraged increased expenditure to stimulate domestic economic activity.
The Cabinet set a target of achieving six per cent gross domestic product (GDP) growth, considering it as the most optimistic scenario, as revealed in statements on the government’s official website following a meeting led by the prime minister.
The worst-case scenario was for a five per cent expansion, it said. The government agreed to prioritise growth, especially focusing on industrial development including manufacturing, according to one of the statements.
Chinh ordered ministries to accelerate the disbursement of public investment, in line with International Monetary Fund (IMF) recommendations.
The government’s latest projection comes a day after it reported that GDP growth in the first nine months of 2023 averaged only 4.2 per cent, even after an acceleration in the third quarter.
Vietnam’s official growth target is 6.5 per cent. The trade-reliant economy must grow by 10.6 per cent in the fourth quarter to hit six per cent for the full year, according to one of the statements. A seven per cent expansion next quarter will bring the average to five per cent this year. Vietnam’s GDP grew about eight per cent in 2022.
Although the country’s exports returned to growth in September – halting a six-month slump – the nine-month average remained in negative territory.
The IMF’s executive board recently said the economy needs fiscal support to boost activity, given limited capacity for monetary policy to make a difference.
Vietnam’s central bank has cut borrowing costs four times this year.
