According to the report, industrial production in May showed a high resilience with a growth rate of 1.6% (month-on-month), but retail sales decreased by 3.1% due to the impact of the pandemic. Social distancing and shops have to close.
Vietnam’s external economic position slightly decreased in May as commodity export turnover and FDI commitments decreased by 6.7% and 20% respectively compared to April.
In addition, domestic prices increased by 0.3% (compared to the previous month) due to rising global goods prices while credit grew at a slower pace due to weakening economic activity and a slight increase in interbank interest rates.
Also according to the report, the state budget surplus in the first 5 months of 2021 due to the increase in budget revenue by 15.2% (year-on-year) while total budget expenditure decreased by 3.7% (year-on-year). previous year) due to a marked slowdown in the implementation of the public investment program.
In the coming time, special attention should be paid to the development of industrial production and retail as both of these industries may continue to be affected by the fourth Covid-19 outbreak. Exports may also be affected by production contraction in some industrial zones.
The report said that if this outbreak is not contained quickly, the Government may need to consider adopting more accommodative fiscal policy to support individuals and businesses affected by the Covid-19 epidemic and stimulate domestic demand.
Source: vietnamfinance.vn – Translated by fintel.vn