PM Phuc shows confidence of 6.7% growth goal

PM Nguyen Xuan Phuc told Bloomberg that he is confident economic growth this year will meet a goal of 6.7 per cent without adding to inflation, despite weak expansion last quarter.

He said Viet Nam is taking steps to bolster the economy as the nation seeks to retain its status as one of the world's fastest-growing economies, in an interview at the Government Office in Ha Noi on May 27.

"Main economic indicators in May are all very good with a strong pickup in exports, foreign investment and agriculture production, laying ground for faster growth in the third and fourth quarters," Mr Phuc said in an interview with Bloomberg Television's Haslinda Amin. The growth target of 6.7% "is difficult but it is possible" he added.

The government must balance efforts to spur gross domestic product growth while ensuring inflation doesn't exceed its 2017 target of 4%, according to Mr Phuc. "We must curb inflation at the mandate number as we have committed to the National Assembly," he said.

Mr Phuc said tourism is expected to grow 30%, agricultural exports will beat the US$32 billion shipped last year, and electronics exports are going to surge - counter forces to the economic headwinds the nation faced in the first quarter.

The government is also speeding up the restructuring of its banking sector with stronger reforms in underperforming lenders, according to Mr Phuc. He reiterated Viet Nam's plans to sell out from the more troubled banks.

"We will allow foreign investors to take over those banks if there is anyone interested to buy," Phuc said.

Viet Nam's economy grew 6.21% in 2016, the second consecutive year of more than 6% expansion, defying a regional slowdown to remain one of the world's best performers, as its exports remained resilient to a global trade slowdown.

"I'm quite optimistic about the economic outlook of Viet Nam this year," the premier said./.

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