Vietnamese Government sets 2016 economic targets

The Government is likely to inject more capital into the economy to ensure the gross domestic product(GDP) grows by 6.7 percent this year. (Source: VNA)

Hanoi (VNA) - The Government has recently adopted major measures to implement the country's 2016 socio-economic development plan and state budget.

The Resolution No.1 issued recently by the Government has laid down some key objectives for this year, as follows;

Gross domestic product (GDP) grows 6.7 percent; export turnover increases by 10 percent; import surplus ratio against exports is under 5 percent; consumer price index grows less than 5 percent; total development investment is about 31 percent of the GDP; the percentage of multi-dimensional poor household rate reduces to between 1.3 percent to 1.5 percent and health insurance coverage nationwide is about 76 percent.

Maintaining macroeconomic stability while controlling inflation.

To ensure this objective is achievable, the Government has asked all government agencies, people's committees and organisations nationwide to pull efforts to carry out their assigned tasks at a high level.

The Government has asked the State Bank of Vietnam to work closely with ministries and central and local government agencies to come up with proactive monetary and fiscal policies to put inflation under the control and stabilise the macro economy so that Vietnam will achieve a rational economic development growth.

To achieve these targets, the Government Resolution has asked the State Bank of Vietnam to implement all monetary tools and policies to stabilise the foreign currency market in line with the development of the national macro-economy as well as the financial and monetary market inside and outside Vietnam.

Pro-active fiscal policy

The Government has asked the Ministry of Finance to co-ordinate with ministries and central and local governments to develop a pro-active national budget for 2016.

The Resolution has also listed some key measures to help achieve the national budget target. One of the measures is to strictly implement the Tax Law and state budget collection missions.

"In 2016, Vietnam vows to strictly control public debt, government debt as well as foreign debt as written in the National Assembly Resolution," the document says.

To achieve these targets, the Ministry of Planning and Investment (MPI) is instructed to come up with high quality and feasible policies in line with economic development inside and outside Vietnam while closely monitoring the world crude oil price development.

The Government Resolution lists three key areas for the national economic restructuring, namely public investment; State economic groups/corporations; State Commercial banks and credit organisations. However, public investment is the core. The MPI will work closely with other ministries and government agencies to monitor and supervise the use of Official Development Aid (ODA), preferential loans from foreign donors, plus the State development investment credits and others in all public investment projects.

Meanwhile, State investment credits are designated to invest only in important and urgent projects having a big impact on the country's socio-economic development.

The document also emphasises the need to mobilise other capital resources in the construction of essential infrastructure socio-economic projects by combining various methods like public-private partnership, foreign direct investment, joint venture and others.

Export promotion

The Resolution calls on the Ministry of Industry and Trade (MOIT) to work out policies to diversify import markets to avoid heavy dependence on a certain market while taking measures to promote exports in a sustainable manner.

"The MOIT should adopt effective measures to increase exports to potential markets, particularly commodities with high value added and high export turnover," the Government Resolution says.

The document also lays emphasis on the effective use of trade protective measures as regulated by the World Trade Organisation in restrictions on imports and protecting domestic production.

IT application

The Ministry of Home Affairs and central and local government agencies are asked to strictly implement the country's Master Programme on Public Administrative Reform in the 2011-20 period and the Government's Plan on Administrative Reform from 2016-2020.

The Government's Resolution asks all central and local government agencies and organisations to apply IT in their public services, particularly the Government's Resolution 36a on IT application.

Corruption prevention

All ministries and central and local agencies have to strictly implement rules and regulations on the prevention and combating of corrupt activities, particularly the regulation that public officials have to make reports on their income and assets.-VNA