The Vietnamese government aims to achieve an economic growth
rate of 6.7% next year, higher than an expansion of 6.3%-6.5% seen this year, although the scope for either monetary or fiscal easing is rather limited.
The figure was announced by Prime Minister Nguyen Xuan Phuc during a report read at the opening of a month-long sitting of the National Assembly on October 20.
Inflation is set at 4%, below a 5% target set for 2016, while the export turnover growth is projected to slow to 6%-7% next year given a dim outlook for global oil prices.
Notably, the state budget deficit as per GDP will be curbed at 3.5%, a considerable fall compared to figures of above 5% in recent years.
The local economy, hit by the worst drought in decades and low oil prices, grew 5.93% in the first three quarters of this year, forcing the government to slash its growth target to 6.3%-6.5% from the initial 6.7%.
Total outstanding loans in the banking system have expanded 11.24% since the end of last year while the country’s foreign exchange reserves have reached the all-time high of $40 billion plus, PM Nguyen Xuan Phuc said.
Many international financial institutions including the World Bank
and the Asian Development Bank (ADB
) have lowered their growth forecasts for Vietnam to 6.0%-6.2% this year due to a weak performance of the agriculture and mining sectors.