VOV.VN - The disbursement rate for public investment of 30.49% recorded during the first half of the year is widely viewed as one of the key driving forces in accelerating Vietnam’s economic growth ahead in the remaining months of the year, according to insiders.

The goal of keeping inflation under 4.5% this year will be totally feasible, as the rate may range between 2.5-3.5%, experts said at a seminar held in Hanoi on July 4.

The United Overseas Bank (UOB) has lowered its 2023 economic growth forecast for Vietnam from 6% to 5.2%, and forecast that Vietnam will continue to cut regulatory interest rates in the third quarter this year to stimulate its economy.

The State Bank of Vietnam (SBV) has sent a document to credit institutions and branches of foreign banks and SBV in provinces and centrally-run cities regarding the reduction of interest rates.

The economic slowdown in Vietnam has led to a significant decline in personal income tax revenue.

The Government on June 30 issued Decree No. 44/2023/ND-CP on reducing the value added tax (VAT) in line with the National Assembly’s Resolution No. 101/2023/QH15 dated on June 24, 2023.

The disbursement of public investment funded by official development assistance (ODA) in localities in the first six months of this year has reached only 7.6% of the year’s target, according to the Ministry of Finance (MoF).

Standard Chartered Bank forecasts Vietnam’s second quarter GDP growth to have slowed to 1.5% year-on-year (from 3.3% in the first quarter), posing downside risks to its 6.5% growth forecast for 2023. However, a rebound is expected in the second half of the year.

The stock market has reportedly shown positive response to recent interest rate cuts.

The period of strong volatility of the US dollar has ended, and the US$/VND exchange rate in the last six months of 2023 will remain stable, experts have forecast.