[NEWS] – Vietnam’s economy grew amazingly in the Third quarter of 2022

On October 20 in Hanoi, the World Bank (WB) announced the Update on Vietnam’s Macroeconomic Situation in October 2022.

In the third quarter of 2022, Vietnam’s economy achieved a high growth rate of 13.7% over the same period in 2021. Also thanks to the low starting effect, the cumulative first three quarters of 2022, the growth index of the economy reached 8.9% over the same period last year. Specifically, the report of the World Bank shows that thanks to more vibrant economic activities in the third quarter of this year, industrial production and retail sales recorded another month of high growth (at 13.0% and 36.1% over the same period in 2021.

Energy prices have cooled down now, but consumer price index (CPI) inflation rose from 2.9% in August to 3.9% in September mainly due to rent and education costs. higher. Core CPI inflation also increased, from 3.15 in August to 3.8% in September. The growth rate of the trade rate in the third quarter of 2022 has decreased compared to the second quarter.

Regarding bank credit due to solid demand, the overnight interbank interest rate increased from 3.5% in August to 5.48% in mid-October, the highest level since 2013. Vietnam’s currency continues to depreciate against the USD - which is getting stronger in September when the USD appreciates 1% compared to August and 3.8% over the same period in 2021. To stabilize the local currency The State Bank of Vietnam raised two key policy interest rates and the ceiling on short-term deposit interest rates in local currency by 100 basis points, marking the first interest rate hike since April 2020.

September’s budget balance for the first time overspent at 0.5 billion USD in 2022, but still recorded a surplus of 10.5 billion USD in the first 9 months of the year. Due to the budget surplus, the volume of government bonds issued this year has only reached 28.7% of the year plan, compared to 67.9% in 2021.

Recent events related to the case of Saigon Commercial Bank (SCB) highlight the need to improve transparency through the timely disclosure of detailed information on the performance of the banking sector, strengthen corporate governance and strengthen risk-based supervision, including monitoring lending activities of corporate groups and related party lending for early intervention, strengthening bank handling mechanisms.

Thanh Long