WB: Strategic investment pipeline needed for sustainable economic development

Chia sẻ
(VOVWORLD) - A strategic and well-prepared investment pipeline with a focus on green, resilient and regional infrastructure will help bolster Vietnam's sustainable economic development, according to the October edition of the World Bank’s monthly Vietnam Macro Monitoring.
WB: Strategic investment pipeline needed for sustainable economic development - ảnh 1

The reports reveals that the industrial production index grew by 2.89 % on-month in October, due to the continued recovery of manufacturing exports.

However, prospects remain fragile as Vietnam’s PMI remained in contractionary territory in October (49.6), as it was in September (49.7). The monthly growth of retail sales remained flat of -0.01 % in October, compared with 0.55 % growth in September. 

Exports and imports of goods continued to recover, increasing by 1.6% and 1.05% respectively, as demand from trade partners continued to gradually recover. However, both exports and imports of the first 10 months remained in contractionary territory, decreasing by 6.9% (on-year) and 12.4% (on-year) respectively.

The Consumer Price Index (CPI) inflation registered 3.6 % on-year in October, driven by transport costs, while core inflation fell from 3.8 % on-year in September to 3.4 % on-year in October, below the 2023 policy rate of 4.5 % set by the authorities.

Credit growth remained sluggish, registering -0.1 % (m/m) and 9.3 % (on-year) in October 2023, well below the pre-COVID period and reflecting persistent weak private investment.

The economic slowdown continued to weigh on the government budget. Despite a surge in revenue collection in October, revenue collection during the first 10 months of 2023 was 4.5 % lower than the same period of the last year.

At the same time, public expenditure accelerated by 11.4 % during the same period (on-year) reflecting the government’s effort to support the slowing economy.

Public investment disbursement increased by 35 % (on-year) for the 10-month period, helping the government achieve 55 % of the annual planned budget (compared with 46.5 % during the same period of 2022).

This execution rate, however, is still low given that there are only two remaining months for disbursing 2023 budget.