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Vietnam’s economy shows signs of recovery
Several sectors have been able to find their own way out of difficult financial downturn, which can be seen as clear signs of an economic recovery in Vietnam, the Cong Thuong (Trade and Industry) newspaper said in its September 22 issue.
The paper cited forecast by economic consultant Tran Vinh Du from the ERS Group in the US that inflation is unlikely to be a problem for Vietnam in the short and medium term.
Inflation was a main concern for both policy makers and the business circle in Vietnam at the end of the second quarter of 2009. However, to date, all the macro-economic signals from the economy have put an end to this fear, for now.
Credit growth, one of the major causes for inflation, has been limited at 30 percent for 2009 with the rate already reaching 22 percent by July, the growth in loans can only reach a maximum rate of 8 percent in the remaining five months of the year, which will not lead to inflation.
In addition, the prices of raw materials around the world market are expected to see only small rises.
The Energy Information Administration (EIA) has predicted that the price of crude oil will fluctuate at around 70 USD per barrel from now until the year end, while the UN Food and Agriculture Organisation (FAO) said it is unlikely that food prices will surge during the rest of the year unless harsh weather or serious disasters hit the world’s major food producing areas. At the moment Vietnam has even seen a drop in rice prices.
The aviation sector has also seen some bright spots.
The Cong Thuong highlighted the latest report from low cost carrier Jetstar Pacific, which said the number of passengers it carried in the first half of the year grew by 30 percent, along with a rise in the frequency of flights on all routes. The figures are all the more impressive against the overall gloomy picture of the world aviation industry.
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