Deputy Prime Minister Vuong Dinh Hue, Chairman of National Financial and Monetary Policy Consultation Council chaired the second quarter session meeting of 2017 to formulate the report serving the Government management at the regular Government Meeting on July 1, 2017.
20170706105756083PTT Vuong Dinh Hue
At the meeting, the council’s members assessed that the macroeconomic targets remained stable in the first six months of the year. The inflation is moderated closer to the target of 2017 (4.15% as compared to end-year-target of 4%) in line with the target of price management assembly.
State collected revenue increased significantly, import rose at high level with majority of in goods and machines for production. GDP of the second quarter increased considerably as compared to the first quarter of 2017 (6.13% in comparison with 5.15%).
In early 2017, pressure of rising inflation and trade deficit leading to the pressure of increasing interest rate and exchange rate, the State Bank of Vietnam implemented synchronous monetary policies via opening market, combined with operating interest rate and exchange rate to help stabilize monetary market in accordance with the macroeconomic targets.
Total liquidity increased by 5.69%; liquidity of banking system is ensured, credit growth increased stronger by 7.98% as compared to that of previous years thereby supporting the disbursement of public investment capital. The capital resources were mainly concentrated into production and business, especially priority sectors and credit for poor people. Credit for real-estate investment and business was managed strictly reduced to a lower level in the first six month 2017 as compared to 2016. Interest rate was remained stable.
Members of the council have also forecast the risks and uncertainties in the global economy, the trend of raising the protectionism and slowed export growth in the US and the EU would also affect the Vietnamese economy.
Meanwhile in the domestic market, inflation would be curbed at average rate of 4%, creating basis for cuting-off the operational cost for enterprises and the economy, supporting economic growth.
However, the Council noted the Government on solving the FDI capital disbursement which is lower than previous years; considering the method of calculating average inflation; adjusting the proper price of electricity and enhancing investment in electricity sector.
Council’s member proposed the Government to direct ministries to continue considering the mechanism of gold and USD mobilization from the public to create capital resource for production and business; decrease the mobilization and lending rates to reduce capital cost, etc.
In conclusion, Deputy PM Hue asked the State Bank of Vietnam to prepare a completed report to submit to the government and the Prime Minister.
Deputy Prime Minister Vuong Dinh Hue confirmed that the government and ministries will continue to keep a close watch on macroeconomic developments, step up public investment restructuring and State-owned enterprise equitisation and issue guidance on the implementation of the National Assembly’s resolution on handling bad debt in timely manner.
Concurrently, improve the administrative reform, facilitate trading in combination with anti-commercial fraud; continue explore the potential growth in agriculture, tourism and services to ensure the sustainable and long-term development.
Thoa Le