Members of NA Standing Committee on April 20 discussed ways to implementthe socio-economic development plan for the rest of this year.
Minister of Planning and Investment Bui Quang Vinh said inflationremains under control at 0.16 percent in March, and the growth of theConsumer Price Index (CPI) this month is below 0.1 percent.
He said these factors have contributed to stabilising the economy and market.
However, Nguyen Van Giau, chairman of the NA Economic Committee, saidthere have been some difficulties in reaching the targets ofsocio-economic development.
He said the growth of GrossDomestic Product (GDP) in the first quarter reached only 4 percent,lower than the targeted 6-6.5 percent. The Index of IndustrialProduction (IIP) increased by 4 percent over the same period last year,marking the lowest growth margin in the past years.
Theinventory index of processing and manufacturing industries was up nearly35 percent over the same period last year, while the consumption indexonly increased by 0.5 percent.
Members of the NA EconomicCommittee agreed that these statistics indicate a reduction inproduction, and the low growth of CPI showed a decrease in total demandthat has negatively affected the economy.
They also agreedthat the economy could suffer from higher pressure on the increase inprices starting in the second quarter this year.
Ministerof Finance Vuong Dinh Hue said incomes for the State Budget in the firstquarter reached nearly 173 trillion VND (8.2 billion USD), equivalentwith 23.3 percent of the budget estimates that predicted the incomesfrom export-import activities will remain very low.
Deputy chairwoman of the committee Nguyen Thi Kim Ngan said in spite ofdifficulties and some poor results in economic growth and production,the targets of socio-economic development should not be lowered,especially the goal of economic growth at 6 percent. Instead, sheinsisted, feasible solutions should be put forward.
All members of the committee were in agreement with this suggestion.
Minister of Planning and Investment Vinh proposed three main solutionsto ensure the success of this year's socio-economic development plan: tocontrol inflation and stabilise the economy, to boost production andtrading activities and to improve the quality of human resources.
He said it will be necessary to manage the loans of the Governmentand public and to maintain supportive financial policies for small- andmedium-sized enterprises to help them weather the difficult period,especially those in the processing and export production industries.
According to Vinh, the Government plans to continue lowering interestrates and boosting consumption to reduce enterprises' inventory.
He added that the Government started to implement the development planfor human resources based on the demands of specific industries.
Giau said it is necessary to raise the Government's ability to forecasteconomic developments so that it will be able to respond quickly andimplement suitable measures as the situation changes.
Hesaid the Government needs to observe markets at home and abroad in orderto apply proper supply and demand control methods and stabilise thedomestic market, especially the prices of goods necessary for productionand daily life.
Members of the NA Economic Committeeagreed that enterprises need to solicit the Government's assistance indeveloping their markets and introducing their products to regional andinternational markets, as well as raising their management ability andcompetitiveness.
They also agreed that although theGovernment creates more chances for enterprises to access capitalresources, it is necessary to prevent the increase of bad loans.
Giau said tax policies should be adjusted to suit the current situationand certain fees should be carefully considered to avoid raisingproduction expenses of enterprises.
It will also benecessary to boost effective tools to manage and monitor the usage ofthe State budget and public assets, he said.
Huesuggested that the relevant agencies strictly manage tax collection andtax loans as well as implement price adjustment based on the market toavoid a "shock" in the economy.
Nguyen Sinh Hung, chairmanof the NA Standing Committee, said effective solutions should beimplemented soon to hold inflation this year at 9 percent and economicgrowth at 6-6.5 percent to ensure the success of other goals related tosocial security, hunger eradication and poverty reduction, health,culture and traffic safety.
With these discussions , the NA Standing Committee ended its 10-day working session.-VNA
Minister of Planning and Investment Bui Quang Vinh said inflationremains under control at 0.16 percent in March, and the growth of theConsumer Price Index (CPI) this month is below 0.1 percent.
He said these factors have contributed to stabilising the economy and market.
However, Nguyen Van Giau, chairman of the NA Economic Committee, saidthere have been some difficulties in reaching the targets ofsocio-economic development.
He said the growth of GrossDomestic Product (GDP) in the first quarter reached only 4 percent,lower than the targeted 6-6.5 percent. The Index of IndustrialProduction (IIP) increased by 4 percent over the same period last year,marking the lowest growth margin in the past years.
Theinventory index of processing and manufacturing industries was up nearly35 percent over the same period last year, while the consumption indexonly increased by 0.5 percent.
Members of the NA EconomicCommittee agreed that these statistics indicate a reduction inproduction, and the low growth of CPI showed a decrease in total demandthat has negatively affected the economy.
They also agreedthat the economy could suffer from higher pressure on the increase inprices starting in the second quarter this year.
Ministerof Finance Vuong Dinh Hue said incomes for the State Budget in the firstquarter reached nearly 173 trillion VND (8.2 billion USD), equivalentwith 23.3 percent of the budget estimates that predicted the incomesfrom export-import activities will remain very low.
Deputy chairwoman of the committee Nguyen Thi Kim Ngan said in spite ofdifficulties and some poor results in economic growth and production,the targets of socio-economic development should not be lowered,especially the goal of economic growth at 6 percent. Instead, sheinsisted, feasible solutions should be put forward.
All members of the committee were in agreement with this suggestion.
Minister of Planning and Investment Vinh proposed three main solutionsto ensure the success of this year's socio-economic development plan: tocontrol inflation and stabilise the economy, to boost production andtrading activities and to improve the quality of human resources.
He said it will be necessary to manage the loans of the Governmentand public and to maintain supportive financial policies for small- andmedium-sized enterprises to help them weather the difficult period,especially those in the processing and export production industries.
According to Vinh, the Government plans to continue lowering interestrates and boosting consumption to reduce enterprises' inventory.
He added that the Government started to implement the development planfor human resources based on the demands of specific industries.
Giau said it is necessary to raise the Government's ability to forecasteconomic developments so that it will be able to respond quickly andimplement suitable measures as the situation changes.
Hesaid the Government needs to observe markets at home and abroad in orderto apply proper supply and demand control methods and stabilise thedomestic market, especially the prices of goods necessary for productionand daily life.
Members of the NA Economic Committeeagreed that enterprises need to solicit the Government's assistance indeveloping their markets and introducing their products to regional andinternational markets, as well as raising their management ability andcompetitiveness.
They also agreed that although theGovernment creates more chances for enterprises to access capitalresources, it is necessary to prevent the increase of bad loans.
Giau said tax policies should be adjusted to suit the current situationand certain fees should be carefully considered to avoid raisingproduction expenses of enterprises.
It will also benecessary to boost effective tools to manage and monitor the usage ofthe State budget and public assets, he said.
Huesuggested that the relevant agencies strictly manage tax collection andtax loans as well as implement price adjustment based on the market toavoid a "shock" in the economy.
Nguyen Sinh Hung, chairmanof the NA Standing Committee, said effective solutions should beimplemented soon to hold inflation this year at 9 percent and economicgrowth at 6-6.5 percent to ensure the success of other goals related tosocial security, hunger eradication and poverty reduction, health,culture and traffic safety.
With these discussions , the NA Standing Committee ended its 10-day working session.-VNA
