Economy set to grow 6.5-7 percent in next five years

Hanoi (VNA) – Vietnam’s economic growth rate is expected to range from 6.5-7 percent in the next five years, according to a report presented by Deputy Prime Minister Nguyen Xuan Phuc at the ongoing 11th meeting of the 13th National Assembly in Hanoi on March 21.

The report on the national socio-economic development plan for 2016-2020 said that by 2020, average GDP per capita will stay at about 3,200-3,500 USD and State budget overspending is expected at around 4 percent.

Other important tasks during the priod include completing the socialist-oriented market economy institution in line with state rules on a market economy, and intensive and extensive international economic integration.

Apart from perfecting the legal system, efforts will be focused on human resources development, especially creating a high-quality work force, in combination with scientific and technological development, as well as infrastructure construction, the report said.

Some of the major tasks in 2016 is to overcome consequences caused by natural disasters, cope with climate change, and stabilise agricultural production and people’s lives.

Accordingly, the Government will employ urgent solutions to drought in central and Central Highlands regions as well as deal with coastal erosion and salt water intrusion in the Mekong Delta to minimise losses.

It will also keep a close watch on developments of salinisation in order to give prompt guidelines to locals, helping them cultivate the 2016 summer-autumn crop.

During the March 21 working session, Deputy PM Nguyen Xuan Phuc delivered another report on supplementary assessments to the implementation of the 2015 socio-economic development plan.

The official stressed that 12 out of 14 targets assigned by the legislature have been fulfilled or surpassed, excluding those on forest coverage and export growth rates.

Last year, national GDP grew by about 6.68 percent, the highest since 2008, even higher than the 6.5 percent reported to the NA and well above the set target of 6.2 percent, the Deputy PM said, adding that average GDP growth rate over the past five years exceeded 5.9 percent.

Synchronous solutions were taken to curb inflation, stabilise the marco-economy, and manage the monetary and fiscal policies, he reported.

As a result, the consumer price index (CPI) dropped sharply from 11.75 percent in 2010 to 0.6 percent in 2015, the lowest ever recorded over the past decade.

Deputy PM Nguyen Xuan Phuc also pointed to a string of limitations and weaknesses in realising the five-year socio-economic development plan such as unsustainability in curbing inflation and balancing the economy, high budget overspending, rapidly increasing public debt and big development gaps compared with other regional countries.

The annual average GDP growth rate of over 5.9 percent was still lower than the previous five-year period and a far cry from the set target of 6.5-7 percent, he admitted.

After hearing the reports, the NA’s Economic Committee suggested the Government swiftly build specific programmes and projects to actualise targets set for the next five years, while making the best use of opportunities afforded by international economic integration.

Also in the morning session, President of the Vietnam Fatherland Front Central Committee Nguyen Thien Nhan presented a report on recommendations of voters and people nationwide to the NA at this meeting.-VNA