Gov’t urged to enhance macroeconomic stability
Gov’t urged to enhance macroeconomic stability
The National Financial Monetary Policy Advisory Council has proposed the Government enhance macroeconomic stability and maintain the current monetary and fiscal policies.
At a meeting of the council on July 2 to consult with economic experts on macroeconomic policies, intended to serve the Government’s meeting with localities on July 4, Deputy Prime Minister Vuong Dinh Hue asked members of the council to assess the local and global economies in the first half of the year and make predictions for the rest of the year.
According to a report by the State Bank of Vietnam, the country posted an economic growth rate of 6.76%, a trade surplus of US$1.64 billion and an inflation rate of 2.64% in the first six months of the year. Nghi Son Oil Refinery and Petrochemical Plant, Hung Nghiep Formosa Ha Tinh Steel and VinFast automobile complex have become new driving forces for the manufacturing sector.
The Ministry of Finance reported that the State budget’s revenue collection met 53% of the plan. Public and Government debts accounted for 57%-58% and 49%, respectively, of the country’s gross domestic product.
In addition, the country posted positive results for imports and exports. The foreign direct investment in the country also continued to increase.
At the meeting, members of the council agreed that risks for macroeconomic stability have yet to appear.
However, the driving forces for the country’s economic growth such as agriculture, industry and services showed slower growth rates than last year. Further, exports are on a downward trend while public-private partnerships and private-invested projects are facing obstacles.
The council suggested the Government continue keeping a close watch on global trade and investment activities to stabilize the macroeconomy and make preparations to respond to external factors to ease trade and control trade fraud.
The Government and the central bank need to pay attention to the effects of new cryptocurrencies on the country’s monetary policies; quickly issue regulations on cashless payments; and improve the legal system for investment, business management, public-private partnerships and the stock market.
The council’s members also urged the improvement of local monetary and fiscal policies, the adjustment of public service prices and the realistic assessment of the real estate market and banks’ capital mobilization.
