Vietnam set to consolidate macro-economic foundation

On November 1st, the 12th Party Central Committee issued Resolution No5 on reforming growth model, improving growth quality, and enhancing labor productivity and the economy's competitiveness towards rapid, sustainable development. Growth model reform should be combined with implementing 3 strategic breakthroughs and restructuring the economy with priority given to: fine-tuning the socialist-oriented market economy, ensuring macro-economic stability, improving the business and investment environment favorable for start-up, innovation, research and application of scientific-technological advances, improving the quality of human resources, and nurturing talents. Restructuring agriculture should be combined with building new style rural areas, and restructuring public investment, state enterprises, credit organizations, state budget, and public debts.

The Resolution sets the target of consolidating the macro-economic foundation, maintaining inflation rate of below 5% annually, reducing state budget deficit to 4% of GDP by 2020 and to 3% of GDP by 2030. From 2016 to 2020, up to 35% of enterprises will have innovative activities.

The Resolution stresses that Vietnam continues to implement 3 strategic breakthroughs: Fine-tuning the socialist-oriented market economy with a focus on fine-tuning institutions for equitizing and assessing state-owned enterprise, developing the financial market, and improving the institutions for managing public investment, ensuring effectiveness and in accordance with international practice.

The Resolution prioritizes developing and transferring science and technology, which is considered a key to improve the competitiveness of the economy. Efforts should be made develop Vietnam's private sector to become a momentum for economic growth, while reforming the coordination between localities in regional economic development and effectively implementing urbanization. The Resolution also underscores the need to combine growth model reform with security and defense, and enhancing state management.

Source: VOV5