Vietnam Premier Aims For Growth of More Than 7% This Year

(Bloomberg) - Vietnam's Prime Minister Pham Minh Chinh ordered ministries to implement "drastic measures" to boost economic growth to more than 7% this year, following an unexpected acceleration in the previous quarter.

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Chinh, who is also aiming for a fourth-quarter growth of as much as 8%, instructed the central bank to take steps to lower banks' interest rates so loan growth could quicken to meet the 15% target for the industry, according to a government statement following Monday's cabinet meeting. The State Bank of Vietnam will also continue to keep the dong stable, the government said.

Vietnam's economy expanded 7.4% in the third quarter from a year earlier, beating a 6.1% median estimate in a Bloomberg survey and faster than the 7.09% expansion in the second quarter.

The Southeast Asian nation's planning and investment ministry earlier Monday proposed a growth target of 7.6% to 8% in the last three months of 2024, to bring full-year growth to at least 7%, according to a separate government post, citing planning minister Nguyen Chi Dung.

The growth drivers "continue to be positive," with agricultural output continuing to expand and meeting local and overseas demand, according to the government post, which cited Dung. The service sector has been expanding monthly, while industrial production "continues to recover quickly, being the driving force for economic growth."

Premier Chinh pushed for measures to boost manufacturing and accelerate fund disbursement for public investment. He also ordered ministries to lead in recovery efforts from Typhoon Yagi, which killed hundreds and caused more than $3 billion in economic damage.

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