The Government's estimate for a GDP growth rate of 5.5-5.8 percent for 2014 that was submitted to the National Assembly's ongoing year-end session reflects a change in thinking in economics - a more solid and feasible growth is chosen. Insights from the Vietnam Government Portal.
On behalf of the Vietnamese Government, Prime Minister Nguyen Tan Dung on October 21 presented a report on the socio-economic situation in 2013, the results of the first three-year implementation of the 2011-2015 five-year plan and the tasks for 2014-2015 at the 6th session of the 13th National Assembly.
The Government has no longer preferred a “hot” gross domestic product (GDP) growth rate that heavily relied on investment capital and credit growth. It chooses a sustainable growth which depends on economic restructuring and three strategic breakthroughs.
GDP increased from 4.76 percent in Q1, 5 percent in Q2 and 5.54 percent in Q3 to an expected 6 percent in Q4 this year, showing a rising trend. In the first nine months, the number of newly-established enterprises picked up 10.8 percent and over 11,200 ones resumed operation.
GDP estimate for 2013 is higher than real GDP growth rate for 2012 (5.4 percent in comparison with 5.25 percent ). However, the estimate for 2013 (5.4 percent) is lower than the National Assembly's preset index (5.5 percent).
Structure of economic sectors moved positively, in which the proportion of agro-forestry and fishery decreased and industry-construction and service increased.
The proportions of investment and GDP plummeted rapidly from 39.2 percent in 2006-2010 to only 30.9 percent in 2011-2013, and around 29.1 percent in 2013.
However, there are shortcomings in the domestic economy, especially the low GDP growth rate of 5.63 percent on average over the last three years.
The agro-forestry-fishery sector expanded at a low pace in two consecutive years at 4.02 percent in 2011 and 2.68 percent in 2012 and 2.52 percent in 2013 (estimated), respectively.
The industry-construction sector, the driving force for national economic growth, slowed down to only 5.75 percent in 2012 and 5.43 percent in 2013.
The total demand remains weak and the proportion of investment and GDP decline unexpectedly - that force customers to tighten their belts.
Solutions to socio-economic development targets
In the report at the National Assembly's 6th session, Prime Minister Dung also highlighted the Government’s major solutions to address current difficulties and realise future plans for national socio-economic development. He laid a stress on enhancing the macro-economy stability and inflation control.
The Government aims to implement flexible monetary and tight budget policies, adjust the interest rates in accordance with the inflation control target, boost export and control import while increasing foreign currency reserves and stimulating the capital and stock markets.
A market mechanism will be continuously applied to essential public services and products in a suitable roadmap to ensure the inflation control requirement, transparency and policies supporting contributors and the poor.
The Prime Minister underlined a focus on removing difficulties in production and trade and ensuring an appropriate growth rate. Targets have been set for increasing the supply, supporting domestic market development, implementing synchronised solutions and taking advantage of opportunities and favourable conditions in international agreements to expand export market.
It is also aimed to address bad debts, prioritise capital for agriculture, rural development, production for export, small- and medium-sized enterprises, support and hi-tech industry.
Administrative procedures will be continuously simplified and further support granted to the consumption of major goods and natural disaster and epidemic recovery programmes. Tourism and services development will also be facilitated.
The acceleration of the economy restructure is preferred. The general scheme on restructuring the economy and other projects on restructuring sectors will be implemented synchronously, focusing on boosting public investment, restructuring the banking system, financial market, State-owned businesses, agriculture, industry and services.
He also pointed to the effective implementation of institutional reforms and the development of human resources and infrastructural system.-VNA
On behalf of the Vietnamese Government, Prime Minister Nguyen Tan Dung on October 21 presented a report on the socio-economic situation in 2013, the results of the first three-year implementation of the 2011-2015 five-year plan and the tasks for 2014-2015 at the 6th session of the 13th National Assembly.
The Government has no longer preferred a “hot” gross domestic product (GDP) growth rate that heavily relied on investment capital and credit growth. It chooses a sustainable growth which depends on economic restructuring and three strategic breakthroughs.
GDP increased from 4.76 percent in Q1, 5 percent in Q2 and 5.54 percent in Q3 to an expected 6 percent in Q4 this year, showing a rising trend. In the first nine months, the number of newly-established enterprises picked up 10.8 percent and over 11,200 ones resumed operation.
GDP estimate for 2013 is higher than real GDP growth rate for 2012 (5.4 percent in comparison with 5.25 percent ). However, the estimate for 2013 (5.4 percent) is lower than the National Assembly's preset index (5.5 percent).
Structure of economic sectors moved positively, in which the proportion of agro-forestry and fishery decreased and industry-construction and service increased.
The proportions of investment and GDP plummeted rapidly from 39.2 percent in 2006-2010 to only 30.9 percent in 2011-2013, and around 29.1 percent in 2013.
However, there are shortcomings in the domestic economy, especially the low GDP growth rate of 5.63 percent on average over the last three years.
The agro-forestry-fishery sector expanded at a low pace in two consecutive years at 4.02 percent in 2011 and 2.68 percent in 2012 and 2.52 percent in 2013 (estimated), respectively.
The industry-construction sector, the driving force for national economic growth, slowed down to only 5.75 percent in 2012 and 5.43 percent in 2013.
The total demand remains weak and the proportion of investment and GDP decline unexpectedly - that force customers to tighten their belts.
Solutions to socio-economic development targets
In the report at the National Assembly's 6th session, Prime Minister Dung also highlighted the Government’s major solutions to address current difficulties and realise future plans for national socio-economic development. He laid a stress on enhancing the macro-economy stability and inflation control.
The Government aims to implement flexible monetary and tight budget policies, adjust the interest rates in accordance with the inflation control target, boost export and control import while increasing foreign currency reserves and stimulating the capital and stock markets.
A market mechanism will be continuously applied to essential public services and products in a suitable roadmap to ensure the inflation control requirement, transparency and policies supporting contributors and the poor.
The Prime Minister underlined a focus on removing difficulties in production and trade and ensuring an appropriate growth rate. Targets have been set for increasing the supply, supporting domestic market development, implementing synchronised solutions and taking advantage of opportunities and favourable conditions in international agreements to expand export market.
It is also aimed to address bad debts, prioritise capital for agriculture, rural development, production for export, small- and medium-sized enterprises, support and hi-tech industry.
Administrative procedures will be continuously simplified and further support granted to the consumption of major goods and natural disaster and epidemic recovery programmes. Tourism and services development will also be facilitated.
The acceleration of the economy restructure is preferred. The general scheme on restructuring the economy and other projects on restructuring sectors will be implemented synchronously, focusing on boosting public investment, restructuring the banking system, financial market, State-owned businesses, agriculture, industry and services.
He also pointed to the effective implementation of institutional reforms and the development of human resources and infrastructural system.-VNA
