3-26-09, 9:22 am

Original source: Vietnam News Agency

Economy rises 3.1 percent this quarter

HCM CITY— GDP growth in the first quarter was 3.1 per cent, the Ministry of Planning and Investment announced yesterday. This was much lower than last year’s figure of 7.4 percent.

However, Planning and Investment Deputy Minister Cao Viet Sinh said the 3.1 percent increase was good considering the global economic downturn.

Agriculture and seafood grew a mere 2.86 percent as compared to the same period last year. Representatives from the Ministry of Agriculture and Rural Development attributed the slight increase to the poor harvest of paddy during the winter season in the north and a lower-than-expected yield during the winter-spring season in the south.

However, the ministry said exports of several agricultural produces, including rice, had remained significant thanks to high demand in the global market.

As Russia recently allowed 30 seafood exporters to resume trading, the ministry also expected the industry would meet export targets for the second quarter.

The Planning and Investment Ministry reported 8.15 per cent growth in construction and industry over the same period last year. Services expanded 8.05 per cent against the same period last year.

The ministry estimated March exports at $3.9 billion, and $13.5 billion for the first quarter.

Gems and precious metals were the biggest foreign currency earner, a year-on-year increase of 4.9 percent, followed by rice, pepper and tea.

The ministry also reported first-quarter imports of $11.8 billion, a 45 percent decrease compared with the same period last year.

In HCM City, about 21,000 of 26,000 workers who lost jobs successfully found new ones. However, authorities admit finding new jobs for the rest remains difficult.

Deputy Minister Sinh expected that the first quarter would be the worst. He predicted that there would be significant improvements from the next quarter as a series of Government’s measures take effect.

However, Sinh said responsible authorities at provincial levels must speed up and implement the measures simultaneously to make the recovery more effective.

He also confirmed that planning and investment would submit to the Government recommendations to postpone price hikes for several imported materials.

It was also suggested that the Government cut import tax on several products, reduce interest rates for exporters and allow more businesses to benefit from the Government’s incentive policies on stimulating consumption and investment.

Sinh also said his ministry would suggest that Government bonds allocated to several ministries, sectors and provinces be returned if not used by the end of September. The Government this year issued bonds worth up to VND56 trillion.

The ministry will set up inspection teams to supervise the implementation of measures worked out by the Government to prevent economic slowdown and ensure social welfare.