Vietnam targets to pump VND21 trillion each month into the economy or 2% credit growth a month to push the economic growth, said Nguyen Xuan Phuc, deputy Prime Minister at the on-going Congress meeting.

The target was set in the context that in the first 6 months of this year the country’s GDP posted 4.31% growth while it targets 6-6.5% GDP growth for the whole year; total retail goods and service rose 20.3%, CPI rose nearly 3% ; deposit rate cap is cut to 9% and lending rate cap at 13% p.a. and credit growth falls in the first 5 months and only rose in June, money flows are heading to priotized sectors.

 The country posted 20.8% growth in export in H1/2012 while trade deficit accounted for 2.9% export value, easing the balance of payment and forex pressure.

The new plan is expected to raise Vietnam’s credit growth to 12-13% this year, and the new money will boost economy demand, clearing enterprises’ inventories, the government report said.

Vietnam also commits to speed up privatization of state-own corporation, restructure the banking system, regulates the economy focusing on stable development and higher competativeness.

 

Source StoxPlus