Exports maintain decent growth due to higher prices: report

Sunday, 2017-03-05 07:22:15
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The Vietnamese economy is still in the recovery period with exports continuing to grow.
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NDO - Vietnam maintained decent export growth in the first two months of 2017 thanks to higher export prices, according to the National Financial Supervisory Commission (NFSC).

Total export revenues in January and February rose 15.4% year on year, compared with just 2.9% a year earlier, mainly due to average export prices rising on average by 14%, boosted by oil, coal, steel and rubber.

The first two months saw industrial production slowdown due to sharp falls in oil output while aggregate demand slightly improved along with consumer demand rising at a slower pace than last year.

Foreign direct investment (FDI) also slowed in the last two months, indicating that the US withdrawal from the Trans-Pacific Partnership affected the inflow of FDI into Vietnam to a certain degree.

Nevertheless, with exports continuing to grow, the NFSC states that the Vietnamese economy is still in the recovery period.

According to the commission, inflation is projected to accelerate in 2017 if periodical price increases, especially public service fees, are not tightly controlled.

During the 2012-2015 period, about 55.4% of total non-performing loans worth VND500 trillion (US$22 billion) were handled by credit institutions themselves while the remaining were sold to the Vietnam Asset Management Company (VAMC).

However, only a small proportion of bad debt sold to the VAMC has been resolved, that is why the average medium and long-term lending rates fell only mildly last year despite positive inflation figures.

The VAMC has set a target to resolve VND33 trillion (US$1.45 billion) worth of bad debt in 2017.

According to the NFSC, the handling of bad debt is heading in a positive direction with more specific and clearer steps under a proposed law stipulating special mechanisms for the VAMC and credit institutions.