Actively implementing the growth plan

10:09 | 25/09/2015 Economy- Society

(VEN) - The number of newly established enterprises has increased by 73 percent, while the private sector’s investment has increased by more than 11 percent, meaning that the economy has continued flourishing. However, to complete this year’s macroeconomic targets and respond to market developments, specific policies are required.

Actively implementing the growth plan

Increased investment

Minister of Planning and Investment Bui Quang Vinh said that the number of newly established enterprises reached more than 13,000 in the first 50 days after the amended Enterprise Law and Investment Law took effect on July 1, an increase of 73 percent compared to the same period last year. He also said that economic recovery, the stable macroeconomic environment and transparent procedures were key elements leading to an increase in the number of newly established enterprises.

According to the National Financial Supervisory Commission, trade and production activities have been improved and the domestic market has shown signs of recovery. In the first eight months of the year, the index of industrial production increased by around 9.9 percent compared to a year ago, while the number of newly established enterprises increased by 29.2 percent. In addition, the number of dissolved enterprises reduced by 2.9 percent.

The National Financial Supervisory Commission said that trade and production activities would continue thriving. Total retail sales of goods and services reached an estimated increase of 10.1 percent in the first eight months of the year. If inflationary factors are excluded, real growth stood at 9.1 percent. This was the highest rate compared to a year ago in the last five years.

Support policies for businesses

To ensure strong development of the business community, especially small and medium-sized enterprises (SMEs), specific mechanisms and policies from state management agencies are needed.

The Asian Development Bank proposed that the government should strengthen support for SMEs in order to help them become more competitive and participate in the global value chain. The lending rate for SMEs has fallen during the global financial crisis. Therefore, the government needs to create favorable conditions for SMEs to easily access new financial resources.

Despite unfavorable impacts from the world economy, the National Financial Supervisory Commission forecasted that Vietnam’s economic growth in 2015 would exceed 6.2 percent. The commission recommended that management agencies should daily monitor the financial and monetary market and policy-making agencies need to devise scenarios to respond to bad developments.

Thuy Linh