Deputy Prime Minister Vương Đình Huệ speaks at a meeting of the National Advisory Council on Financial and Monetary Policies. — VNA/VNS Photo Văn Điệp

HÀ NỘI — The National Advisory Council on Financial and Monetary Policies met on Thursday to assess economic growth in the first quarter of the year and determine factors that may affect growth in the remaining months of the year, including obstacles to the banking and financial sectors.

A report from the State Bank of Việt Nam (SBV) showed domestic demand stayed stable in the first three months of the year and consumption and foreign direct investment (FDI) maintained solid growth compared to the same period last year. Newly registered and additional FDI capital rose by 82.6 per cent while FDI disbursement picked up 6.2 per cent.

However, export growth slowed remarkably. There was a 5.4 per cent increase this year before March 15 compared to 26.5 per cent in the same period last year, according to the General Department of Việt Nam Customs. Small increases in the export of farm produce, aquatic products, minerals, phone-electronics-computers and parts affected the growth of industrial production.

The SBV estimated the GDP growth rate in the first quarter at 6.3-6.5 per cent, which is lower than the unprecedented level of 7.45 per cent in Q1 last year but still higher than the Q1 figures of other years since 2009.

Deputy Minister of Industry and Trade Trần Quốc Khánh said the growth in foreign trade value was lower than expected at around 4.7 per cent.

However, he was still confident the targets set by the National Assembly could be achieved as there is room for growth in the steel, automobile, thermal energy, leather-footwear, textile-garment and agro-forestry-fishery sectors. The targets set for this year include 9-10 per cent growth in industrial production and 8-10 per cent growth in exports.

The advisory council’s members agreed the domestic economy has remained stable and there is no need to revise solutions specified in the Government’s Resolution 01 on carrying out the socio-economic development plan and State budget estimate.

They said ministries and sectors have proactive and flexible monetary policies to keep inflation stable, contributing to stabilising the macro economy and supporting growth.

They agreed the currency’s value and the inter-bank interest rate have been kept stable, and that total means of payment went up 2.67 per cent compared to the end of 2018, helping control inflation. 

The members recommended pushing ahead with measures specified in Resolutions 01 and 02 while keeping an eye on domestic and world developments to be ready for timely adjustments.

Many members suggested the Government work to remove bottlenecks in the Law on Planning and quickly complete adjustments to the Law on Public Investment.

The council also urged the Government to accelerate the disbursement of public investment funds, especially for major projects.

Deputy Prime Minister Vương Đình Huệ said the Government would take proper measures to stabilise the macro-economy and keep inflation under control this year while ensuring growth targets set by the National Assembly. — VNS