The Vietnamese economy is facing three major challenges, namely lowcredit growth, slow pace of non-performing loan settlement, and sluggishbusiness and production, the Government news portal quoted formerDeputy Minister of Planning and Investment Cao Viet Sinh as saying.
Althoughcredit growth rose steadily from 3.15 percent in July to 4.08 percentin August and 6.62 percent in September this year, capital has not beeneffectively pumped into the economy. As a result, it is hard to expectstrong growth.
Meanwhile, banks’ non-performing loans tend toincrease mainly due to low credit growth and slow settlement of baddebts. For instance, the ratio rose from 3.61 percent at the end of 2013to 4.07 percent last May and even 4.17 percent in June.
So farthis year, the Vietnam Asset Management Company purchased around 19,600billion VND of bad debts compared to the preset target of 70-100trillion VND for 2014 alone.
For business community, the formerDeputy Minister said he really feels worried as the number of dissolvedand suspended enterprises went up 13.8 percent, equivalent to 48,330enterprises, against the previous year.
The number of newly-established businesses and registered capital volume have not much improved, he added.
Toovercome the above challenges, the Government has tasked inferiorlevels to realize a series of solutions to facilitate production andbusiness while stepping up the implementation of the Master plan torestructure the economy.
The General Statistics Office hasreported that the economy expanded 5.62 percent in the first nine monthsof 2014.The figure, Sinh commented, goes beyond expectations.
Specifically,the GDP climbed from 5.09 percent in the first quarter to 5.42 percentand 6.19 percent in the second and third quarters, respectively,according to the statistics agency.
The index of industrialproduction also rose on the quarterly basis, from 5.3 percent in thefirst quarter to 6.9 percent in the second quarter and 7.7 percent inthe July-September period.
Other positive signals includeincreases in both foreign direct investment inflow (reaching 8.9 billionUSD, up 3.2 percent) and official development assistance (4.1 billionUSD, up 10 percent compared to the same period last year).-VNA
Althoughcredit growth rose steadily from 3.15 percent in July to 4.08 percentin August and 6.62 percent in September this year, capital has not beeneffectively pumped into the economy. As a result, it is hard to expectstrong growth.
Meanwhile, banks’ non-performing loans tend toincrease mainly due to low credit growth and slow settlement of baddebts. For instance, the ratio rose from 3.61 percent at the end of 2013to 4.07 percent last May and even 4.17 percent in June.
So farthis year, the Vietnam Asset Management Company purchased around 19,600billion VND of bad debts compared to the preset target of 70-100trillion VND for 2014 alone.
For business community, the formerDeputy Minister said he really feels worried as the number of dissolvedand suspended enterprises went up 13.8 percent, equivalent to 48,330enterprises, against the previous year.
The number of newly-established businesses and registered capital volume have not much improved, he added.
Toovercome the above challenges, the Government has tasked inferiorlevels to realize a series of solutions to facilitate production andbusiness while stepping up the implementation of the Master plan torestructure the economy.
The General Statistics Office hasreported that the economy expanded 5.62 percent in the first nine monthsof 2014.The figure, Sinh commented, goes beyond expectations.
Specifically,the GDP climbed from 5.09 percent in the first quarter to 5.42 percentand 6.19 percent in the second and third quarters, respectively,according to the statistics agency.
The index of industrialproduction also rose on the quarterly basis, from 5.3 percent in thefirst quarter to 6.9 percent in the second quarter and 7.7 percent inthe July-September period.
Other positive signals includeincreases in both foreign direct investment inflow (reaching 8.9 billionUSD, up 3.2 percent) and official development assistance (4.1 billionUSD, up 10 percent compared to the same period last year).-VNA
