Goal of 6.5 percent growth rate – big challenge: GSO head

Illustrative image (Photo: VNA)

Hanoi (VNA) – The Vietnamese economy continues to face many difficulties in the following quarters and the target of a 6.5 percent growth rate this year will be a great challenge as the global economy is still affected by the COVID-19 pandemic, head of the General Statistics Office (GSO) Nguyen Thi Huong has stated.

Talking to the Vietnam News Agency, Huong said that the country’s stable macro-economy and the economic growth of 4.58 percent in the first quarter of 2021, higher than the 3.68 percent of the same period last year, are favourable conditions for production and business.

However, the resurgence of the pandemic in late January has posed challenges for the management and direction of economic development and for ensuring social welfare.

Right from the beginning of this year, Huong went on, the Government and the Prime Minister instructed ministries, sectors and localities to carry out measures synchronously, flexibly and effectively to achieve the dual targets of fighting the pandemic and stepping up economic recovery and development.

The number of new businesses in Q1 reduced by 1.4 percent year-on-year, but their total registered capital rose by 27.5 percent. The disbursement of foreign investment increased by an estimated 6.5 percent year-on-year, and the average CPI rose by 0.29 percent – the lowest for Q1 within 20 years, Huong said.

Head of the General Statistics Office (GSO) Nguyen Thi Huong (Photo: VNA)

To curb inflation, she recommended authorized agencies to keep a close watch on price developments of commodities inside and outside the country. She stressed that the adjustment of prices of commodities managed by the State should be made at a right time and at an appropriate level.

Huong expressed her belief that the Government’s goal of curbing inflation at around 4 percent this year is feasible.

To overcome difficulties, the business community was advised to take initiative in seeking new opportunities, ideas, orientations and business partners.

The State should continue issuing policies and effective support packages for businesses and consider reducing corporate income tax for all enterprises until the end of this year.

To achieve a 6.5 percent growth rate, it is important to well control the pandemic, stabilise economic development and maintain the agricultural sector’s growth pace, Huong stated, adding that Vietnam should bring into full play opportunities brought about by free trade agreements to speed up import-export activities and improve the competitiveness and values of exported products.

Ministries and sectors should speed up public investment disbursement and pay more attention to developing e-commerce, she added./.

VNA