The meeting of the national financial and monetary policy advisory council in Hanoi on September 25 (Photo: VNA) Hanoi (VNA) – Some members of the nationalfinancial and monetary policy advisory council have pointed out certainproblems in the economy, warning that failure to address them would not onlymake faster growth unachievable but also decelerate economic expansion.
At a meeting in Hanoi on September 25, thecouncil said despite the growth slowdown in the global economy and bigeconomies along with complex developments in the world’s financial – monetarymarkets and trade, the Vietnamese economy has performed positively over thelast nine months.
Economic indexes between January and August mettargets, and the economy is on the way to attain the targeted GDP growth rate of6.8 percent this year, driven by the recovery of the mining industry, the domesticconsumption, the disbursement of foreign direct investment (FDI) capital andsome new processing – manufacturing projects, which have made up for theshowdown in mobile phone and component production, according to the advisorycouncil.
Meanwhile, inflation is still kept under controlas it grew only 2.57 percent in the eight months – a three-year low.
Besides, the council highlighted the high budgetcollection, the stock market’s growth rate of over 10 percent from the end of2018, and the corporate bond market reaching 586 trillion VND (25.1 billionUSD, equivalent to 10.6 percent of the GDP) by the end of this year’s secondquarter.
Advisors also spoke highly of the Government’ssteering and coordination of the monetary, fiscal and other policies.
However, they pointed out that the capitalabsorption capacity of the economy remains weak due to institutional obstacles,which has led to the sluggishness in the allocation and disbursement of publicinvestment capital and hampered enterprise development, investment and businessclimate improvement, and implementation of public-private partnership projects.
If the Government failed to remove thosebottlenecks, it would be hard to achieve faster growth, or growth could evendecelerate in the time ahead, they noted.
Some members voiced concern about the quality offoreign investment attraction, noting that the number of foreign investedprojects in the last nine months has risen 26.4 percent year on year, but theirregistered capital dropped 22.3 percent.
They said the Government should not haveregulations that limit the corporate bond market but step up business ratingservices, increase supervision to ensure the market’s healthiness, andassociate the issuance of Government and corporation bonds with the monetarypolicy.
Additionally, the Government should also keepdiversifying export markets, the council said, underlining the need to boostthe export of goods to China via official channels; perfect the standardsrelevant to the Vietnamese origin to fight tax evasion and trade fraud;actively work with other countries, particularly the US, to deal withtrade-related issues; and not use price-related tools to support export.
Appreciating the opinions, Deputy Prime MinisterVuong Dinh Hue said they will help with the Government’s socio-economicgovernance in the remaining months of 2019 to create a solid foundation forperforming tasks next year./.
VNA
