The government’s monthly meeting for March reported that in the first 3 months of this year, Vietnam’s GDP grew 6.03%, the highest rate of growth in 5 years.
Stabilizing the macro-economy remains a major priority of the Vietnamese government.The 6.03% GDP growth rate is attributed to the 100% growth in the industry and construction sectors. Meanwhile, inflation in March increased 0.15%, credit grew 1.25%, and social investment 9.1%, compared to the same period last year.
Bank interest and foreign exchange rates were stable and foreign currency reserve increased. State revenues and expenditures were positive within projection. Vietnam saw more than US$3 billion in foreign direct investment (FDI) disbursed in the first quarter, a year-on-year rise of 10%.
Targeting a yearly GDP growth of 6.2%
The economy has some pending problems such as stagnated production, slow growth in the service, agro-forestry, and fishery sectors, and hot weather and drought in the coastal and southern regions affecting agricultural production. Ministries, sectors, and localities will have to promptly resolve current issues in order to reach socio-economic development targets including a yearly GDP growth rate of 6.2%.
The government will concentrate on measures to stabilize the macro-economy, in particular curbing inflation and budget overspending, and reducing the import surplus while raising export revenues 10%. Reducing obstacles to production and business, particularly in agriculture, is a decisive factor for growth.
Prime Minister Nguyen Tan Dung said: “We have to work together to boost agriculture. I urge ministries to assist agricultural production and export. The government will chair a meeting to gather recommendations and provide immediate support for farmers.”
Ministries and agencies were tasked with speeding up the equitisation of 289 State-owned enterprises (SOEs) this year. The Prime Minister said it is imperative to continue selling stakes in under-performing SOEs and withdraw State capital from non-core business channels.
Reforming the banking system has been on the right track under the government’s strict direction and monitoring.
Ensuring the yearly export plan
The government has pushed measures to boost the export of Vietnamese staples like rice, coffee, rubber, and minerals, while seeking new export markets and tapping advantages in trade agreements, international commitments, and the ASEAN Community.
Deputy Minister of Industry and Trade Tran Tuan Anh said: “A series of free trade agreements have taken force. We will form the ASEAN Community late this year and negotiations on the Trans-Pacific Partnership, the EU-Vietnam Free Trade Agreement, and the Customs Union with Russia, Belarus, and Kazakhstan are progressing well. The current free trade agreements with the Republic of Korea and Italy provide opportunities for our exports.”
The government has asked the Ministry of Culture, Sports, and Tourism to resolve obstacles to tourism and the Ministry of Finance to adjust taxes to match Vietnam’s international commitments and ensure national revenue collection.
The Ministries will work together to build a technical criteria system for import products, disburse resources, guarantee social security targets, and secure the lives of national contributors and ethnic minority people.
