INFLATION UP SLIGHTLY DESPITE SALARY RISE: PM

Inflation grew mildly in July despite the rise in base salaries for civil servants and public employees, Prime Minister Pham Minh Chinh said at a Government meeting today, August 5.

The Government’s regular monthly meeting reviewed the socio-economic performance of the country in July and the first seven months of 2024. The meeting focused on public investment allocations and disbursements, government management, and upcoming key tasks.

Reports indicated positive economic growth in July over June in industry, agriculture, and services. Macroeconomic stability was maintained, and inflation was under control.

The consumer price index (CPI) in July rose by 0.48% against June, with an aggregate increase of 4.12% over the past seven months. Exchange and interest rates remained stable.

Energy and food security were ensured, with rice exports reaching 5.18 million tons, generating US$3.27 billion, up by 5.8% in volume and 25.1% in value over the first seven months of last year.

Export activities grew strongly, with total trade revenue in July up by 8.7% versus June and 21.8% year-on-year. From January to July, trade expanded by 17.1% year-on-year, with exports up 15.7% and imports up 18.5%. July saw a trade surplus of US$2.12 billion, taking to US$14.08 billion the total of the first seven months of the year.

International arrivals in July reached nearly 1.15 million, taking the total to almost 10 million arrivals in January-July, surging by 51% compared to the same period in 2023 and 1.9% against the pre-pandemic levels.

International organizations remain optimistic about Vietnam’s economic outlook. The ASEAN+3 Macroeconomic Research Office raised its 2024 growth forecast for Vietnam to 6.3%, HSBC increased its forecast to 6.5%, and the Asian Development Bank put it at 6%.

Looking ahead, the Government will focus on key initiatives to achieve a GDP growth target of around 7% for the year.

In July, base salaries for civil servants and public employees rose by 30% to VND2.34 million from VND1.8 million, benefiting over 50 million individuals, said Minister of Home Affairs Pham Thi Thanh Tra at a meeting held early last month.

SourceL: The Saigon Times