HANOI: Vietnam’s annual inflation rate edged up to 4.44 per cent in May, official data showed on Wednesday (May 29), nearing the government’s target ceiling of 4.5 per cent for the year and a potential challenge to efforts to boost credit growth to drive activity.
The Southeast Asian country, a regional industrial hub, also reported strong growth in exports and industrial output in the month, but rising inflation could be a concern for authorities.
Consumer prices had risen 4.4 per cent in April from a year earlier, and rose 3.25 per cent in 2023.
Vietnam is targeting economic growth of 6.0 per cent-6.5 per cent this year, faster than an expansion of 5.05 per cent last year.
The central bank, the State Bank of Vietnam, is aiming for credit growth of 15 per cent to help meet the growth goal, but banks have struggled to increase their lending this year.
Banks’ total outstanding loans as of May 10 had risen 1.95 per cent from the end of last year, state media cited the central bank as saying on Tuesday.
Other data released by the General Statistics Office (GSO) on Wednesday showed exports are estimated to have risen 15.8 per cent in May from a year earlier to US$32.81 billion, led by shipments of electronics and smartphones
Imports in the month are estimated to have grown an annual 29.9 per cent to US$33.81 billion, resulting in a trade deficit of US$1 billion for May, the GSO said.
Shipments of smartphones in May are estimated to have risen 50.6 per cent from a year earlier to US$4.4 billion, while electronics exports rose 31.5 per cent to US$5.9 billion.
Industrial output in the month rose an annual 8.9 per cent and retail sales were up 9.5 per cent, the GSO said.
