GDP grows 4.73% in nine months

GDP grows 4.73% in nine months

Gross domestic product (GDP) in the first nine months of the year is estimated to pick up 4.73% year-on-year, below the year-ago figure of 5.77%, making the year’s target of 6-6.5% more unlikely.

GDP growth in the first three quarters is put at 4%, 4.66% and 5.35% respectively, according to the General Statistics Office.

Agro-aqua-forestry posts growth of 2.48%, contributing 0.4 percentage point to the GDP growth; industry and construction up 4.36%, contributing 1.82 percentage points; and services up 5.97%, contributing 2.51 percentage points. As such, all three sectors record lower growth in the first nine months than the same period last year.

According to a report on the socio-economic situation in the January-September period, the inventory index had reached 20.4% as of September 1, gradually falling against the level of 35% by the end of the first quarter. The Index of Industrial Production (IIP) had risen 4.8% year-on-year, versus 7.8% in the same period last year.

Consumption was poor with total retail sales of goods and services up 17.3%, while the figure was 22.8% in the same period in 2011.

The report shows investment certificates had been issued for 775 foreign direct investment (FDI) projects as of September 20, versus 100 projects in the year-ago period. Registered capital in the period totaled over US$6.1 billion, much lower than US$8.2 billion in the same period last year.

Exports are estimated to grow 18.9% in the first nine months at US$83.8 billion, while imports to amount to US$83.7 billion, up 6.6% year-on-year.

The FDI sector mainly contributed to the trade surplus. Local businesses continue to record a trade deficit, with both export and import turnovers dropping year-on-year, suggesting local firms are having difficulty with production and consumption.

According to the Government Office, the international balance of payments is estimated to have US$8 billion in surplus, which is seen as an important condition to increase the country’s foreign reserves.

In the first nine months, FDI disbursements amount to US$8.1 billion, equaling to 98.8% of the year-ago figure, while ODA disbursements reach US$2.88 billion, meeting 95% of the plan.

Thanks to rapid interest rate cuts, total deposits at banks as of September 20 had surged 11.23%, while total outstanding loans grew 2.35% against end-2011.

The Government said on its website that Prime Minister Nguyen Tan Dung urged a curb on inflation to ensure a double-digit rate can be avoided.

The Prime Minister called on efforts to boost credit growth, closely control money supply, keep the exchange rate stable, and restrain interest rates.

vietnamnet