Viet Nam should support aggregate demand through capital expenditures: WB

In its report Viet Nam macro monitoring released on June 19, the WB noted that external demand is showing signs of recovery and Viet Nam's authorities have taken some measures to support the economy.

According to the WB, Index of Industrial production (IIP) increased by 2.6 percent against the previous month in May. This improvement was driven by strong growth in manufacturing sectors such as machinery and equipment (9.8 percent) and computer and electrical products

Exports goods increased by 6.5 percent from a contraction in April, driven by high-tech products. In parallel, imports recovered, growing by 9.5 percent in May.

Compared with the same period in 2023, both exports and imports registered sizable growth rates of 15.8 percent and 29.9 percent in May, respectively.

Foreign direct investment (FDI) commitment reached US$11.07 billion as end of May 2023, 2 percent higher than the same period of last year.

Cumulative FDI disbursement improved, registered US$8.3 billion, 7.8 percent higher than the same period in 2023. A majority of FDI continued to flow into manufacturing and real estate sectors.

Remarkably, budget revenue improved in May, reaching VND 898.4 trillion (52.8 percent of planned revenues) and leading to an increase of 14.8 percent in the first five months of 2024 compared to the same period of last year, the WB highlighted./.