(VOVworld) – Vietnam’s economy has developed significantly in the third quarter but achieving this year’s target growth rate of 6.3-6.5% requires a doubling of efforts, according to the macro-economic report for Vietnam in the third quarter, released in Hanoi on Tuesday by the Vietnam Institute for Economic and Policy Research. The report suggested Vietnam should focus more on macro-economic stability rather than the growth rate.

Nguyen Duc Thanh from Vietnam Institute for Economic and Policy Research represents the report. (Photo: VOV)

Vietnam’s GDP in the third quarter was 6.4% and the September growth rate was 5.93%, lower than the year-on-year figures. The government has recently lowered this year’s target growth rate to 6.3-6.5% while the institute retained their forecast of a growth rate of under 6% or even lower for this year. The credit growth rate is expected to reach up to 18%, so Vietnam is likely to see incremental credit growth in the last quarter, making it possible for the inflation rate to hit the 5% target set by the National Assembly.

Economists demanded policy makers be cautious in monetary policy adjustments.

Nguyen Duc Thanh, head of the Institute, said: “Moderate credit growth and abundant liquidity are favorable conditions for lowering interest rates. The interbank interest rate stayed under 1% in September. There was no pressure on interest rates hike. It’s time for commercial banks to reduce their interest rates, which will be the incentive for business operation and provide the momentum for economic growth”.