Vietnam GDP to grow 8% this year: government

The government has put Vietnam’s GDP growth forecast for this year at 8%, higher than its target of 6-6.5%.

The figure is higher than the predictions of some international institutions. On September 27, the World Bank said the country's economic expansion could hit 7.2% this year, the highest in Southeast Asia.

On September 21, the Asian Development Bank put Vietnam’s growth estimation at 6.5% this year on strong economic fundamentals, key to fast recovery. The figure is the highest in Southeast Asia and equals the Philippines'.

Vietnam’s economic growth of 8.83% year-on-year in the first nine months is the highest recorded in 12 years. The figure for the same period in 2021 and 2020 - both pandemic years, was 1.42% and 2.12%, respectively. The economy expanded 2.58% last year.

Also in its report presented at the National Assembly session Thursday morning, the government lauded the Vietnamese dong as among the most stable currencies in the region, depreciating only 4.8% against the U.S dollar after the first nine months of the year.

Public debts, government debts and inflation have been controlled at safe levels, the report notes.

The consumer price index (CPI) in September rose 4.01% from December last year, the General Statistics Office said. Inflation in the nine-month period was 1.88%.

However, slow disbursement of both public investment and funds earmarked for recovery support under the government’s program is a barrier to the government’s economic development and recovery endeavor.

Only VND60,000 billion ($2.45 billion), or over 20% of the recovery support funds, were disbursed in the first nine months of the year.

Stock and bond markets harbor many risks, while the process of restructuring some weak credit institutions faces many difficulties. Bad debt in the banking system and tax debts tend to rise, according to the report.

The government said it aims to commence construction this December on all the 12 North-South Expressway eastern session subprojects in the 2021-2025 period and Long Thanh International Airport in Dong Nai province.