Pressure on to achieve full-year growth goals

Prime Minister Le Minh Hung a week ago told the National Assembly that disruptions in goods supply chains and costs of oil, gas, and transport has negatively affected international trade and investment flows, and directly Vietnam's socioeconomic development.

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"Vietnam's macroeconomy has been undermined by external headwinds. Our double-digit economic growth goal remains challenging," PM Hung said.

According to the National Statistics Office, GDP in Q1 this year increased 7.83 per cent - the highest since 2011. The three key economic sectors witnessed positive growth, including agro-forestry-fishery (3.58 per cent), industry and construction (8.92 per cent), and services (nearly 8.2 per cent).

However, the government earlier set a target that the economy will grow 9.1 per cent in Q1, 10.2 per cent in Q2. The rate will be 9.7 per cent for the first half of this year, 10.2 per cent in Q3, 10.4 per cent in Q4. The whole-year rate is expected to hit 10 per cent.

Thus, in order to reach the entire-year goal, the six-month rate must be 9.7 per cent, meaning nearly 11 per cent for Q2 to lay a firm foundation for the second half of the year.

Remaining in difficulties

The government has admitted that in Q1, business and production activities in a number of sectors remained in big difficulties. The number of enterprises halted performance in fixed time hit nearly 63,500, up 3.3 per cent on-year, while more than 16,600 businesses were awaiting dissolution procedures, up 45 per cent. Over 11,700 firms completed such procedures, up 99 per cent.

Last year, the number of those suspended operations in fixed time came in at 114,400 - up 14.3 per cent on-year; nearly 77,000 enterprises stopped performance to await completing dissolution procedures up 1 per cent; and nearly 36,000 businesses completed such procedures - up 66 per cent. On average, nearly 19,000 firms were kicked off from the market each month.