Customs clearance. Creating a favourable business environment is one of the ways to help the country achieve growth targets. (Photo laodongthudo.vn) Hanoi (VNA) - Removing barriers and improving the business environmentwould contribute to reaching economic growth targets in the context of a tightState budget, director of the Ministry of Planning and Investment’s NationalEconomic Issues Department Tran Quoc Phuong.
At aconference in Hanoi on September 19, Phuong suggested three main elementsneeded to reach the GDP growth target of 6.7 percent this year: monetaryflexibility and financial management to curb inflation; promoting production inprocessing and manufacturing, developing tourism and accelerating disbursementof FDI and private capital; and restructuring the economy.
He added that the growth rate inthe second quarter was 1 percent higher than in the first. Other indexes werestable while inflation was less than 4 percent. Financial and credit growth inthe first eight months of the year was more than 10 percent.
In addition, the director wasalso optimistic about the growth of processing, manufacturing andimports-exports. Exports posted growth of 18 percent while imports rose by 22 percentin the eight-month period. The import-export growth was expected to surpass theyear’s targets.
However, he said, the PrimeMinister does not want to achieve growth at any cost, only to take advantage ofall opportunities to ease difficulties.
“In the context of a tight Statebudget, the importance is how to provide encouraging policies and mechanisms tocreate an open environment to businesses,” he said.
Vo Tri Thanh, former deputydirector of the Central Institute for Economic Management, said Vietnam hasthree to four barriers to growth, including the State budget; political reform;restructuring and stabilising the macro-economy while ensuring foreign reservesand curbing inflation.
“However, internationalintegration would be one of the most important solutions as we have seen anincrease of resources from FDI and the private sector,” Thanh said.
Dau Anh Tuan, head of the LegalDepartment of the Vietnam Chamber of Commerce and Industry (VCCI) agreed, sayingthat taxes have been an extremely important issue, affecting investors andenterprises.
A VCCI’s survey of 2,000 FDIfirms operating in Vietnam showed that tax and preferential policies are one offour advantages in attracting foreign investors.
Tuan said the Government and theMinistry of Finance should carefully evaluate any change relating to taxpolicies as it could have a major effect on businesses and the economy. “Thelong-term solution for economic growth is to reform, reduce costs and shortentime to implement administrative procedures for firms,” he added.-VNA
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