A brighter outlook

Thanh Nien Daily - Ho Chi Minh City,Vietnam

Overall, exports of rice, gemstones, cassava and certain other primary goods increased in the last four months. Vietnam posted a trade surplus for the first four months of the year, swinging from a deficit in the same period a year earlier.The country recorded a surplus of $801 million through April, compared with a shortfall of more than $11 billion in the same period a year earlier.

Going by the economic figures for the last four months, released last week by the General Statistics Office, we might say Vietnam’s economy has bottomed and will begin to strengthen in the second quarter of 2009.


Agriculture, forestry and fisheries continued to grow, countering unemployment, inflation and fears of deflation, and assisting the export industry.

Although the industrial output growth rate was far less than the same period last year, optimistic signs can be seen.

Manufacturing growth in April reached 5.4 percent while the rate in the first quarter was only 2.6 percent.

Vietnam attracted some US$6.4 billion in foreign direct investment in the first four months of this year.

Additional investments in existing projects totaled $3.9 billion, or $1.4 billion more than newly registered investments in the period.

This fact shows investors have continued to see good results and great potential in Vietnam. Such trust is the most important thing in this time of recession.

Exports in April were down from March but some key items went up, notably electronics, footwear and garments.

Overall, exports of rice, gemstones, cassava and certain other primary goods increased in the last four months.

Vietnam posted a trade surplus for the first four months of the year, swinging from a deficit in the same period a year earlier.

The country recorded a surplus of $801 million through April, compared with a shortfall of more than $11 billion in the same period a year earlier.

Exports declined a bare 0.1 percent to $18.64 billion, while imports plunged 41 percent to $17.84 billion.

Gold re-export contributed the bulk of the surplus. Re-exporting gold was a necessary move to draw out private gold hoards, improve the trade balance, boost foreign currency reserves, and maintain the dong’s value.

The consumer price index fell for the first time in last year’s fourth quarter but rose slightly in the last four months, allaying fears of both inflation and deflation.

By Ngoc Minh