Solid month sets the economic platform foundation for the year.

A robust export month has set the tone for 2011

Industrial production in January rose 16.1 per cent and export turnover reached $6 billion, up 18.1 per cent against the same period last year, according to a Ministry of Planning and Investment report.

Vu Dinh Anh, economist at the Ministry of Finance’s Institute for Market and Prices, said January’s data showed that the economy kept 2010 momentum.

“Our industry and service sectors are being backed by rising demand in both domestic and international markets,” said Anh.

The total retail turnover also increased 22.1 per cent year-on-year, signaling a strong purchase power in the country despite the high consumer price index, which surged 1.74 in January.

Nguyen Minh Phong, head of Department for Economic Development Studies under Hanoi Institute for Socio-Economic Development Studies, said increased industrial production and export turnover would create a solid foundation for economic growth this year.

“When we see a sharp increase in the first month, the next months will be better as many enterprises implement new investment plans,” said Phong.

Some recent surveys showed that a majority of enterprises believed in Vietnam’s brighter economic outlook this year. According to a Grant Thornton survey, 62 per cent of private companies said they were optimistic about Vietnam’s economic outlook. The economy ended 2010 with the growth 6.78 per cent.

The government expects the economic growth will be at least 7 per cent this year. Nguyen Xuan Phuc, Minister and Chairman of the Government Office, said the target was reachable, adding that the government would try its best and “apply all possible measures” for pushing economic growth.

He said the State Bank, under the direction of Prime Minister Nguyen Tan Dung, was trying to lower lending interest rate, which is currently around 17-19 per cent per year.

However, he added, the government did not set the first priority to economic growth. “Curbing inflation and ensuring a stable growth is the main priority this year,” said Phuc.

The CPI last month rose 1.74 per cent against December 2010 and analysts predicted it was on the upward trend due to rising purchase power in the Lunar New Year festival.

In the latest move, the State Bank last week depreciated dong against dollar nine per cent and narrowed the band from +/-3 per cent to +/-1 per cent in order to stabilise the forex market, aiming to curb the inflation rate.