During the January-September period, Vietnam’s manufacturing sector and agricultural production continued to expand. The service sector and domestic consumption was stable. Foreign and domestic investment remained strong.
Highest growth in 8 years
According to the General Statistics Office, Vietnam’s GDP growth over the past 9 months was 6.98%, the highest increase in 8 years. Economists attributed the result to stronger macro-economic stability and an improved business environment.
Director of the Central Institute for Economic Management Nguyen Dinh Cung said, “These are two fundamental factors to ensure stable, sustainable growth.”
Agricultural restructuring has fueled growth. Over the past 9 months, the agro-forestry-fishery sector grew 3.6%.
The restructuring of state-owned enterprises has changed business administration methods and business investment structure. The equitization of large enterprises has had visible results.
Economist Cung explained,“The growth model has shifted from mineral exploitation and money supply expansion to higher productivity, and more effective use of resources.”
Correct direction, flexible management
Nguyen Anh Duong, Head of the Macro-economic Policy Department of the Central Institute for Economic Management, said Vietnam’s creative and flexible policy has paid off. Macro-economic stability is important to investors, who are contributing a great deal to Vietnam’s economy. Private investment increased 17% in the past 9 months, the highest surge among economic sectors and higher than public and foreign investment.
Mr. Duong said this shows stronger business confidence: “The stable environment is important. And we cannot deny the crucial role of the State Bank which flexibly and effectively handled rate pressures. Inflation and exchange rate stabilization was prioritized over growth stimulation. There was a harmonious combination of macro-economic stabilization policy and flexible policy to make businesses more competitive and create opportunities for sectors deemed sensitive.”
Economist Nguyen Tri Hieu praised government efforts, saying, “The government was successful in stabilizing the national economy. The State Bank effectively supported the government in keeping inflation below 4% and in monetary, credit, interest rate, and exchange rate policies to ensure impressive growth.”