Vietnam Minister: World Economy to Recover in Q4, Boosting Emerging Markets

Vietnamese Planning and Investment Minister Vo Hong Phuc has forecast that the global economy will bounce back from recession in fourth quarter next year, which will help boost emerging markets including Vietnam, the Communist Party of Vietnam (CPV) has said on its Website on December 31.

 

“The global economic slowdown will have less adverse impacts on Vietnam’s economy than other economies, and the agricultural production sector still plays an important role in Vietnam and the country’s GDP will slow but remain at relatively high at 6.5 per cent,” Minister Phuc noted.

 

“Next year will be a tough year for Vietnam, and now all-out efforts are aimed at maintaining growth,” Mr Phuc said.

 

To achieve the GDP growth rate of 6.5 per cent set for 2009, the government has assigned Ministries of Planning and Investment, Finance, and the State Bank of Vietnam, the country's central bank, to use the US$1 billion package, just 1.2 per cent GDP value, effectively by funneling into businesses but individual households, Mr Phuc said.

 

The SBV will give loans at 11.5 per cent per annum to farmers and production in rural areas, the MPI and MOF will directly allocate the fund for consumption-stimulus projects, to buy a huge amount of construction materials including cement, steel in stock to help solve difficulties for local businesses, Phuc added.

 

Previously, the government has announced the US$6 billion economic-stimulus packages, including break 30 per cent of corporate income tax for local enterprises to avert recession, state media said. (CPV)