Hanoi, Aug 1 (Prensa Latina) Although it is not growing at the rate desired, Vietnam’s economy is showing positive signs at the end of the first half of the year, according to Prime Minister (PM) Nguyen Tan Dung.
His assessment comes as a result of slowed inflation, maintained stability in the macro-economy and the promotion of production in agriculture and industry.
“We are on the right track” he said in the monthly meeting held by the executive cabinet, which prioritizes attention to crucial topics.
However, he said that economic growth was inferior to the same period in prior years, warning that it will be difficult to reach the goal of between 5.2 and 5.7 percent growth by the end of 2012.
He urged all ministries, sectors and local authorities to focus efforts on assistance to enterprises and promotion of production, particularly with those facing difficulties.
This concerns a recent policy on access to bank loans, debt restructuring, reduction or deferment of interest payments, and flexible disbursement of official development assistance funds through budget allocations and foreign investment.
The PM also said some of the main challenges for the Vietnamese economy are low purchasing power, the excess of inventories with no solutions and an increase in businesses in bankruptcy. Exports at least grew 19 percent with revenue of about $62 billion USD, which the statistics office largely attributed to foreign investment and a decrease in imports which favored the commercial balance.
Still, in the last seven months, a decrease of 23 percent in attracted investment was recorded, valued at $8 billion dollars, and with 44 percent fewer licenses granted.
Processing industries and manufacturing constitute 68.5 percent of the capital, followed by housing (20.1) and wholesale and retail sales (3.9), the source said.