PM calls for lending rate reduction in favor of businesses
VGP – PM Nguyen Xuan Phuc has called for lending rate reduction in a bid to save financial costs of the economy.
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PM Nguyen Xuan Phuc speaks at the Cabinet meeting on Monday. Photo: VGP |
The PM issued the instruction after hearing a report on the economy’s resource updates presented by the Ministry of Planning and Investment.
This short-term measure is expected to help ease financial difficulties particularly faced by new enterprises as official statistics showed there were more than 26,000 newly-established businesses in the first quarter, up 11.4% in number and 45.8% in registered capital.
In the long run, PM Phuc still stressed the need to double efforts to improve market economy institutions, restructure the economy, and transform growth model so as to spur development.
According to the Markit Economics, the Purchasing Managers’ Index in Viet Nam rose to 54.6 in March of 2017 from 54.2 in February.
It was the highest rise since May 2015, as output and new orders rose at faster paces while new export orders went up the most so far this year and employment growth was at 6-month high.
This was also the highest increase among ASEAN countries (50.9% on average).
Also, business sentiment remained solid, supported by predictions of higher new orders as well as business expansion plans. In addition, buying activity increased markedly.
At the same time, input cost inflation quickened to the sharpest in almost six years amid higher raw material prices./.
By Kim Anh
