Driving forces for economic growth need to be upheld: PM hinh anh 1At the Government’s regular meeting on August 1
(Photo: VNA)

Hanoi (VNA) – Driving forces for Vietnam’s economic growth need to be maintained not only in 2018, but also in the years to come, Prime Minister Nguyen Xuan Phuc said at the Government’s regular meeting on August 1.

“We should continue working to create market confidence, and win trust of enterprises so as to branch out business and production in the coming time”, he stressed.

Regarding the country’s socio-economic development, PM Phuc noted that four macroeconomic targets have been ensured, including sound growth of gross domestic production (GDP), price stability, reduction of unemployment rate, and net export turnover. The nation’s unemployment index fell 2.2 percent for the first time.

Thanks to institutional reform, the Government’s direction, and benefits from deep global integration, the economy went into a reverse, starting to grow in the second quarter.

High-tech application has initially improved labour productivity, he said, adding that Vietnam’s logistics index moved five steps to be in top three among ASEAN members, just behind Thailand and Singapore.

However, he pointed out some short-term risks that the economy may encounter, namely impacts of the US-China trade war, trade deficit, reversing foreign direct investment (FDI) flow, reducing remittances, and trade protectionism.

“Our foreign currency reserve is now at 63 billion USD, but it cannot make sure that the economy is able to control the exchange rate amid impacts of global financial market”, he said, requesting flexible management of the exchange rate.

PM Phuc agreed not to change financial policy in the fiscal year 2018, comprising gasoline tax, VAT, and prices of commodities and public services. He ordered tight control of education and health care service prices to prevent soaring inflation.

He asked relevant ministries to tighten fiscal discipline, complete budget collection plan, and accelerate disbursement of public investment in line with the set plan.

Also, he urged the finalisation of public investment law, and construction of key infrastructure works, especially in transport sector.

Besides export markets, local firms should pay due attention to the nearly 100 million people domestic market by improving service quality and food hygiene and safety, he noted.

Regarding slow equitisation progress in some state-owned companies, PM Phuc ordered inspection in relevant localities.

Ministries and agencies must complete the draft Decree on amending and supplementing business conditions, he said, recommending a cut of 50 percent of commodities that must go through specialsied inspections, and more favourable conditions for both people and businesses.

Agricultural shake-up must be promoted, encouraging firms and cooperatives to land more investment in the sector to generate incomes for farmers. This should be made in companion with market reorganisation in processing and manufacturing for sustainable development for post 2020 period.

As economic growth is closely attached to local livelihoods and environment, the Government leader laid stress on environmental protection, and social order and safety.

He lauded the police forces for busting a large-scale drug trafficking ring in Son La province and many other serious cases.

He ordered the Ministry of Agriculture and Rural Development and relevant ministries and agencies to draw out specific programmes in response to natural disasters.

Mentioning critical losses in terms of officials following wrongdoings in the Ministry of Public Security and the Ministry of Information and Communications, PM Phuc called on Cabinet members to set examples in implementing the Resolution adopted at the 4th plenum of the 12th Communist Party of Vietnam Central Committee on enhancing Party building and rectification, and preventing and curbing ideological, ethical and lifestyle degradation as well as the manifestation of “self-evolution” and “self-transformation” inside the Party.-VNA