Vietnam's annual inflation rate reached 4.44% in May, nearing the government's target ceiling of 4.5%. This rising inflation could pose a challenge to efforts to boost credit growth and drive economic activity. The central bank aims for credit growth of 15% to achieve the targeted economic growth of 6.0%-6.5% this year. However, banks have struggled to increase lending. Despite strong growth in exports and industrial output in May, Oxford Economics expects GDP growth to miss the target due to higher interest rates in the US and a soft global external outlook. [1bc4efa8]
Vietnam's economy is on the way to pre-pandemic levels, with GDP growth in the first quarter of 2024 at 5.66%. The government has stabilized the macroeconomy, controlled inflation, and guaranteed major economic balances. State budget revenue has met 43.1% of the yearly target, export turnover increased by 15%, and trade surplus reached US$8.4 billion. The labor market is recovering, with the working age population increasing to 51.3 million. The government is accelerating administrative reform and anti-corruption efforts. However, there are challenges in inflation, credit growth, and gold price control. The real estate market is recovering slowly, and there are issues with traffic and site clearance projects. The government has outlined 11 major tasks and solutions to fulfill targets for the year and the 2021-2025 period, focusing on promoting growth, controlling inflation, and ensuring major balances of the economy. Despite these challenges, Vietnam remains committed to its economic recovery efforts. [dac3d918]
Vietnam's state budget revenue for the first nine months of the year was estimated to be over VNĐ1.2 quadrillion (US$50.8 billion), marking an 8.3% decrease compared to the previous year. The domestic revenue managed by the tax authorities in September reached VNĐ75.6 trillion, bringing the nine-month total to over VNĐ1 quadrillion, a 3.2% decrease year-on-year. To address the challenges faced in the final quarter, the sector will focus on increasing state budget collection, ensuring accurate and timely collection, and enhancing the recovery of overdue debts. The ASEAN+3 Macroeconomic Research Office (AMRO) has revised Vietnam's economic growth forecast for 2023 to 4.7% from the previous 4.4%. Vietnamese state-owned enterprises invested over US$6.6 billion in foreign ventures in 2022, while Vietnamese businesses prioritize diversifying their supply sources. [3ea1bd3f] [d89b28a1]
Vietnamese craft brewer C-Brewmaster faces challenges as global demand falls and consumers watch their wallets. The country's beer market has been affected by the slowing economy, with beer sales declining. C-Brewmaster, a craft brewer in Vietnam, is finding ways to adapt to the changing market conditions. They are exploring new strategies and products to attract consumers and maintain their business. The company is focusing on creating unique and innovative beer flavors to differentiate themselves from larger beer brands. Additionally, they are targeting niche markets and collaborating with other businesses to expand their reach. Despite the challenges, C-Brewmaster remains optimistic about the future of the craft beer industry in Vietnam. [0167fdb4]
The PetroVietnam Power Corporation (PV Power)'s electricity sales revenue for February 2024 dropped by nearly 45 per cent compared to the same period last year. The drop in sales can be attributed to the end of the dry season in both the northern and southern regions of Vietnam, as well as the Lunar New Year holiday, which typically sees lower demand for power. The average electricity price for the period was around VNĐ1,420 per kWh, lower than the average variable fuel price used in PV Power's gas power plants. The Cà Mau 1 and Cà Mau 2 power plants reported the largest revenue contributions, followed by the Vũng Áng 1 power plant. PV Power has set a sales revenue target of VNĐ3 trillion for this month, a 6.6 per cent increase from the same period last year. [efab1d97]
The Việt Nam Institute for Economics and Policy Research (VEPR) has forecasted that the Vietnamese economy will expand at 5.6-6 per cent in 2024. Major growth drivers such as export, foreign direct investment (FDI), and industrial production are increasing, but domestic demand remains weak and businesses face difficulties. Low credit growth, foreign exchange rate pressure, and high inflationary pressure are also challenges. The Vietnamese economy might grow at the lower end of the government's target, at 6 per cent, or as low as 5.5 per cent according to the World Bank's forecast. The US Federal Reserve rate-cut delay and geopolitical tensions in the world are impacting Vietnam's import and export markets and productivity. To accelerate growth, Vietnam should focus on speeding up spending on public investments, removing difficulties for enterprises, improving productivity, and completing the national digital transformation strategy. Weak domestic demand and low private investment are real problems that need to be addressed. The domestic gold market is disconnected from the global market due to the monopoly on import and export of SJC-banded gold bars. Policies need to be amended to promote microfinance. The Vietnamese economy has recovered in the first quarter, but uncertainties persist. The Vietnamese economy is successfully maintaining macroeconomic stability, but limited fiscal resources and monetary policies tied to inflation and exchange rate targets limit the pursuit of macro policies. The reduction of value-added tax (VAT) should be extended, and credit growth should be accelerated while ensuring financial system safety. The focus should also be on completing the national digital transformation strategy and promoting elements that create added value to the digital economy. The macroeconomic stability should be ensured, and fiscal and monetary policies are needed to stimulate demand. The gold market needs appropriate management policies, including amending the decree on managing the gold business, flexible taxes, and the establishment of a gold depository exchange. The Vietnamese economy is facing challenges from the US Federal Reserve rate-cut delay, geopolitical tensions, and production and business struggles. The Vietnamese economy has recovered in the first four months of this year, but uncertainties persist. The Vietnamese economy might grow at the lower end of the government's target, at 6 per cent, or as low as 5.5 per cent according to the World Bank's forecast. The Vietnamese economy is successfully maintaining macroeconomic stability, but limited fiscal resources and monetary policies tied to inflation and exchange rate targets limit the pursuit of macro policies. The reduction of value-added tax (VAT) should be extended, and credit growth should be accelerated while ensuring financial system safety. The focus should also be on completing the national digital transformation strategy and promoting elements that create added value to the digital economy. Weak domestic demand and low private investment are real problems that need to be addressed. The domestic gold market is disconnected from the global market due to the monopoly on import and export of SJC-banded gold bars. Policies need to be amended to promote microfinance. [e24cd786]