15:28 | 31/12/2015 Economy
Deputy Prime Minister Vu Van Ninh has asked the Finance Ministry to execute policies favourable for businesses, thereby improving national economic competitiveness, in light of plummeting oil prices.
Deputy Prime Minister Vu Van Ninh
The ministry forecast that the economy would grow by 6.7%, with inflation below 5%, and exports up 10% in 2016.
With the upcoming birth of the ASEAN Economic Community and the signing of free trade agreements, Vietnam is forecast to meet both advantages and challenges, including uncertain weather conditions, epidemic outbreaks, and risks in the global financial market.
The government has submitted to the National Assembly a report on State budget balance for 2016, including a revenue of more than VND1,000 trillion (US$45.4 billion) - VND54.5 trillion (US$2.4 billion) of which is sourced from crude oil.
The estimated spending is over VND1.270 trillion (US$57.7 billion), said Deputy Finance Minister Vu Thi Mai, adding that as of December 28, the State revenue was approximately VND957 trillion (US$43.5 billion), or 105% of the estimate.
However, she also raised concerns over smuggling and trade fraud, transfer pricing, wasteful allocation of funding, and slow progress of pestment and equitisation.
The Deputy PM, for his part, said a 7-8% increase in budget revenue collection is enough to offset a deficit due to crude oil price slump.
He urged the ministry to overhaul financial mechanisms in its units, regulate prices in the market mechanism and continue financial reform.
Finance Minister Dinh Tien Dung, who was present at the event, directed a number of tasks for 2016, including speeding up restructuring of State-owned enterprises, improving the efficiency of using the State budget, and contributing to stabilising the macro-economy, among others./.