Vietnam’s economy grew at a fast pace in the first half of 2018 compared to the previous years, but there are indications that it is losing momentum – a problem not only in the last half of the year but also in 2019 and 2020.
Containers are loaded at Tan Vu Port of Hai Phong Port in Hai Phong city (Photo: VNA).
The remark was made by Dang Duc Anh, head of the analysis and
forecast section of the National Centre for Socio-economic Information and
Forecast (NCIF), at a discussion in Hanoi on August 8.
The growth rate reached 7.45 percent in the first quarter and
6.79 percent in the second quarter, but it is predicted to slow down to 6.72
percent during July-September and 6.56 percent in the last three months.
Meanwhile, average inflation is likely to be around 4 – 4.2 percent, according
to the NCIF.
Despite the 7.08-percent growth in the first six months,
there are many challenges during the rest of the year, including pressure from
the appreciation of the US dollar due to the possibility that the US Federal
Reserve could hike interest rates twice from now to the year’s end.
Resources for economic growth in the coming months are
unclear while the processing and manufacturing industry – a major driving force
– is depending on FDI firms and still at a low level in value chains. The
driving force from the FDI sector, which is becoming saturated in Vietnam, is
also reducing. Additionally, effects of business climate improvement policies
haven’t been clearly seen, he added.
Other challenges include impacts of the US-China trade war.
Echoing his view, other experts said the US-China trade
tension could lead to a domino effect on Vietnam’s economy.
Tran Toan Thang, head of the NCIF’s world economy section,
said the trade war, geopolitical risks and the US’s taxation policy reforms will
affect investment decision of multi-national American companies. The reduction
of corporate income tax in the US may also trigger a wave of tax cut or more
investment incentives in some countries to keep US businesses, which could
impact the competitiveness of Vietnam’s investment environment.
To maintain the growth momentum for the coming time, Vietnam
should create a more transparent investment climate, improve technological
capacity to attract more FDI companies, and actively respond to the US-China trade
war’s impacts and exchange rate changes.
Meanwhile, Luu Bich Ho, former Director of the Vietnam
Institute for Development Strategies at the Ministry of Planning and
Investment, said the country needs to press on with developing processing and
manufacturing and pay more attention to seeking export markets.
He noted amid US-China trade tensions, it is necessary to
prevent Chinese goods from taking advantage of the Vietnamese market to falsify
their origin to export to the US, or Vietnam could be taxed in a way China has
been.
Source: VNA
After more than four years of implementing a project launched by the Hoa Binh Party Committee’s Standing Board on developing agriculture and promoting product consumption linked with building new-style rural areas for the 2021-2025 period, the province’s industry and trade sector has made significant strides, greatly contributing to local socio-economic development.
Luong Son district has identified 2025 as the year for the accelerated breakthrough to successfully implement the socio-economic development plan for the 5-year period from 2021 to 2025. The district has been focusing on executing the plans and trying to achieve a GRDP growth rate of approximately 15%.
Since the beginning of this year, under the direction of the Department of Agriculture and Environment, the Sub-Department of Agricultural, Forestry, and Fishery Product Quality Management has strengthened the integration of the professional activities to promote and guide the organizations and individuals in the production and trading of agricultural, forestry, and fishery products to comply with the legal regulations regarding the use of chemicals, pesticides and veterinary medicines in crop cultivation, livestock farming and aquaculture. They also provide guidance to processing and manufacturing establishments on keeping the records to trace the product origins and using food additives from the approved list according to the regulations.
Hoa Binh province saw a significant rise in state budget revenue in the first two months of 2025, heard a meeting chaired by Vice Chairman of the provincial People’s Committee Quach Tat Liem.
Ha Thi Ha Chi, a 26-year-old graduate in law, has taken an unconventional path by returning to her hometown in Mai Chau district to establish the Tong Dau Cooperative, creating stable jobs for local women and bringing Thai ethnic brocade weaving to the global market.
As the Lunar New Year 2025 approached, pork prices surged, creating a profitable season for farmers in Tan Vinh commune, Luong Son district. Taking advantage of the rising demand, Can Minh Son, a farmer from Coi hamlet, sold over 30 pigs at 69,000 VND/kg, each weighing more than 100 kg. After deducting expenses, his family earned a profit of over 50 million VND.
