GDP growth rate norm is within reach

National Assembly deputies met on May 25 to discuss and make additional assessments of socio-economic performance and State budget in 2016 and pass the 2015 State budget balance-sheet.

Deputies acknowledged that out of 13 norms which had been assigned by the National Assembly, 11 exceeded goals and two were approximately met.

Deputy Hoang Van Cuong from Ha Noi said that the norm on unemployment was 3.18% (lower than the preset goal of 4%) and CPI touched 4.78% (lower than 5%). These figures showed that the economy was relatively stable.

However, deputy Nguyen Thanh Quang from Da Nang city was concerned that the number of newly-founded enterprises was 110,100 and 39,580 in 2016 and early 2017, respectively. However, the number of dissolved enterprises was relatively high with 4,067 in early 2017.

Deputy Tran Hoang Ngan said that even though GDP growth rate was only 5.1% in Q1, which is the lowest rate over the last four years, there are foundations for the preset goal of 6.7%. He mentioned economic potentials including the private sector, Resolutions of the fifth Party Central Committee (12th tenure), and the Government's Resolution 35. A draft bill on SMEs support will soon be released.

Deputy Nguyen Thanh Quang suggested the Government attach more attention to generating impetus for private sector development.

Deputy Nguyen Thanh Hien from Nghe An province proposed the Government strengthen investigation and define responsibilities of heads of agencies in order to attain a GDP growth rate of 6.7% and over 7% in the rest three quarters.

Deputy Thach Phuoc Binh from Tra Vinh province recommended the Government pursue close monetary policy to support business development; control budget overspending; keep public debts under control; accelerate equitization and capital withdrawal from SOEs; put an end to prolonged unprofitable projects.

Addressing the discussion session, PM Nguyen Xuan Phuc, who is a deputy from Hai Phong, mentioned objective causes behind economic difficulties in 2016, including the serious saltwater intrusion in the South with about 1 million ha of paddy damaged (equivalent to 0.5% of GDP), the maritime environmental incident in the Central region (0.5% of GDP).

PM Phuc also assessed that in 2017 the country has determined to fulfill the GDP preset goal.

However, the Government chief also acknowledged shortcomings that are yet to be addressed, namely slow disbursement of public investment projects, complicated procedures on public investment, and inefficient administrative reform./.

Source: Online Newspaper of the Government of the Socialist Republic of Vietnam