Toughest time has passed: deputy PM

20-Jun-2012 Intellasia | Saigon Times Daily | 7:01 AM

Deputy prime minister Nguyen Xuan Phuc stated the economy has passed the toughest time and achieved better growth, so the gross domestic product (GDP) growth target of 6 percent will remain unchanged.

The GDP growth in the second quarter is estimated at 4.5 percent, versus 4 percent in the first quarter. The consumer price index (CPI) in the first half picks up some 3 percent, the lowest level in three years.

Interest rates and trade deficit are on the downtrend, said the deputy prime minister at the National Assembly (NA) question and answer session last Friday.

However, businesses are still struggling, with around 21,800 enterprises halting operation and going bust in the first five months, rising 9.5 percent year-on-year. The number of suspended firms in May drops 10 percent against the average level of four preceding months.

Inventory tends to fall, from 34.9 percent in March to 32.1 percent in April and 30 percent in May.

Phuc said the government will strive for an outstanding loan growth of 2 percent per month, so that the whole year growth will reach 12-13 percent, versus the original target of 17 percent. It is expected that the State will inject VND21 trillion into the economy every month from now to the end of the year.

At the session, NA deputies raised many questions about the wrongdoings of Vinashin and Vinalines and bad debts of State groups and corporations.

Deputy prime minister Phuc said a part of bad debts at banks is owed by State conglomerates, especially the loss-making ones.