Vietnam’s annual inflation rate rose to 4.44 percent in May, official data showed Wednesday, edging closer to the government’s 4.5 percent ceiling for the year and posing a potential challenge to efforts to stimulate credit growth to stimulate activity.
The Southeast Asian country, a regional industrial hub, also reported strong growth in exports and industrial production during the month, but rising inflation could be a cause for concern for authorities.
Consumer prices increased by 4.4% in April compared to the previous year, and by 3.25% in 2023.
Vietnam is targeting economic growth of 6.0% to 6.5% this year, faster than last year’s 5.05% expansion.
The central bank, the State Bank of Vietnam, is targeting credit growth of 15% to meet the growth target, but banks have struggled to increase lending this year.
Banks’ total outstanding loans as of May 10 had increased 1.95% from the end of last year, according to state media citing the central bank on Tuesday.
Other data released by the General Statistics Office (GSO) on Wednesday showed that exports rose 15.8 percent in May from a year earlier to $32.81 billion, driven by appliance shipments. electronics and smartphones.
Imports increased 29.9% in May to $33.81 billion, resulting in a trade deficit of $1 billion for May, according to the GSO.
Smartphone shipments in May rose 50.6% from a year earlier to $4.4 billion, while electronics exports rose 31.5% to $5.9 billion. dollars.
Industrial production during the month rose 8.9% year-on-year and retail sales rose 9.5%, the GSO said.
