The Government's estimate for a GDP growth rate of 5.5-5.8 percent for2014 that was submitted to the National Assembly's ongoing year-endsession reflects a change in thinking in economics - a more solid andfeasible growth is chosen. Insights from the Vietnam Government Portal.
On behalf of the Vietnamese Government, PrimeMinister Nguyen Tan Dung on October 21 presented a report on thesocio-economic situation in 2013, the results of the first three-yearimplementation of the 2011-2015 five-year plan and the tasks for2014-2015 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 creditgrowth. It chooses a sustainable growth which depends on economicrestructuring and three strategic breakthroughs.
GDP increased from 4.76 percent in Q1, 5 percent in Q2 and 5.54percent in Q3 to an expected 6 percent in Q4 this year, showing a risingtrend. In the first nine months, the number of newly-establishedenterprises picked up 10.8 percent and over 11,200 ones resumedoperation.
GDP estimate for 2013 is higher than realGDP growth rate for 2012 (5.4 percent in comparison with 5.25 percent). However, the estimate for 2013 (5.4 percent) is lower than theNational Assembly's preset index (5.5 percent).
Structure of economic sectors moved positively, in which the proportionof agro-forestry and fishery decreased and industry-construction andservice increased.
The proportions of investment andGDP plummeted rapidly from 39.2 percent in 2006-2010 to only 30.9percent in 2011-2013, and around 29.1 percent in 2013.
However, there are shortcomings in the domestic economy, especiallythe low GDP growth rate of 5.63 percent on average over the last threeyears.
The agro-forestry-fishery sector expanded ata low pace in two consecutive years at 4.02 percent in 2011 and 2.68percent in 2012 and 2.52 percent in 2013 (estimated), respectively.
The industry-construction sector, the driving force for nationaleconomic growth, slowed down to only 5.75 percent in 2012 and 5.43percent in 2013.
The total demand remains weak andthe proportion of investment and GDP decline unexpectedly - that forcecustomers to tighten their belts.
Solutions to socio-economic development targets
In the report at the National Assembly's 6th session, Prime MinisterDung also highlighted the Government’s major solutions to addresscurrent difficulties and realise future plans for nationalsocio-economic development. He laid a stress on enhancing themacro-economy stability and inflation control.
TheGovernment aims to implement flexible monetary and tight budgetpolicies, adjust the interest rates in accordance with the inflationcontrol target, boost export and control import while increasing foreigncurrency reserves and stimulating the capital and stock markets.
A market mechanism will be continuously applied to essential publicservices and products in a suitable roadmap to ensure the inflationcontrol requirement, transparency and policies supporting contributorsand the poor.
The Prime Minister underlined a focuson removing difficulties in production and trade and ensuring anappropriate growth rate. Targets have been set for increasing thesupply, supporting domestic market development, implementingsynchronised solutions and taking advantage of opportunities andfavourable conditions in international agreements to expand exportmarket.
It is also aimed to address bad debts,prioritise capital for agriculture, rural development, production forexport, small- and medium-sized enterprises, support and hi-techindustry.
Administrative procedures will becontinuously simplified and further support granted to the consumptionof 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 generalscheme on restructuring the economy and other projects on restructuringsectors will be implemented synchronously, focusing on boosting publicinvestment, restructuring the banking system, financial market,State-owned businesses, agriculture, industry and services.
He also pointed to the effective implementation of institutionalreforms and the development of human resources and infrastructuralsystem.-VNA