Vietnam needs high political determination to achieve 6.5 percent GDP growth hinh anh 1Deputy Minister of Planning and Investment Tran Quoc Phuong (Photo: VNA)
Hanoi (VNA) – Vietnam needs a high political determination to achieve 6.5 percent in GDP growth rate in 2021, Deputy Minister of Planning and Investment Tran Quoc Phuong has said.

In an interview granted to VietnamPlus e-newspaper, Phuong said that the COVID-19 pandemic, which has developed rapidly and unpredictably with unprecedented danger, has affected all aspects of the global economic and social lives strongly and comprehensively.

The pandemic pushed the world economy into the worst recession since the Great Depression in 1929-1933, causing a serious crisis in employment and social welfare as well as affecting the political and socio-economic order.

However, Vietnam has well controlled the pandemic, thus creating favourable conditions to recover and develop socio-economic activities.

According to the assessment of the World Health Organisation, Vietnam is among the few countries that have well curbed the pandemic and have carried out right, timely, effective and low-cost response measures. As a result, Vietnam’s GDP growth rate was estimated at 2.91 percent in 2020, making it become the country with the highest growth rate as compared to five major Southeast Asian economies, and one of the 16 most successful emerging economies, Phuong stated.

Last year, the foreign exchange market was kept stable and liquidity was guaranteed, foreign exchange reserves were at the highest level ever, the average consumer price index increased by 3.23 percent (below the target of 4 percent), he said, adding that basic spending tasks were ensured, especially spending on important political tasks, and the prevention and control of natural disasters and diseases.

Vietnam needs high political determination to achieve 6.5 percent GDP growth hinh anh 2Illustrative image (Photo: VNA)
The Deputy PM attributed the achievements to the unprecedented leadership and direction of the Government, especially in response to the COVID-19 pandemic.

Regarding the disbursement of public investment, Phuong said that the Government pas paid attention to speeding up the disbursement to create pervasive influences so as to stimulate investment, boost domestic production, generate jobs and maintain economic growth pace.

Last year, disbursement of investment from the State budget reached 91.1 percent of the yearly target, but increased by 34.5 percent compared to that of the previous year – the highest level during 2011-2020.

Many sectors and fields have benefitted from the increase in public investment, thereby helping businesses and labourers have more income for investment and reproduction.

Vietnam needs high political determination to achieve 6.5 percent GDP growth hinh anh 3Illustrative image (Photo: VNA)
However, in 2021, Phuong noted, the new Law on Public Investment regulates that ministries and localities must disburse all allocated public investment within the year and the sum which failed to be disbursed would be deducted from the planned medium-term public investment for that agency or localities.

With this regulation, the public investment plans of localities and ministries were expected to be more accurate and feasible.

With the new law, failure to disburse public investment would be a very big problem as the accountability would be enhanced, he said, adding that careful consideration must be given to developing public investment plans to improve efficiency of public investment.

Public investment mainly focused on developing key social-economic infrastructure systems which played an important role in attracting private and foreign investment into the economy and contributed to maintaining reasonable economic growth.

According to the General Statistics Office, every increase by one percent in public investment disbursement would push up GDP by 0.06 percentage points.

Phuong said that the National Assembly resolution sets a target of 6 percent in GDP growth and 4 percent in inflation for 2021, which were calculated thoroughly.

However, the Government set a target of striving for a 6.5 percent GDP growth rate, which the official said needs a high political determination./.