Government targets better growth quality

10:28 | 20/04/2017 Economy- Society

(VEN) - The prime minister signed a resolution on April 5, 2016 aimed at renewing the country’s economic growth model and improving its quality, as well as increasing labor productivity and competitiveness during the 2016-2020 period.  

Macro-economic fundamentals

The resolution (27/NQ-CP) lays out some basic economic principles and goals, including curbing inflation at under five percent a year and cutting the budget deficit to less than 3.5 percent of gross domestic product (GDP) by 2020.

In addition, public debt will be limited to no higher than 65 percent of GDP, while government debt and foreign debt will not exceed 54 percent and 50 percent of GDP. The government also pledges to divest capital from all enterprises that the state has no need to own more than 50 percent. By 2020, the country will have at least one million active businesses, and 15,000 cooperatives and agricultural cooperative unions with healthy operations.

Policies for the development of the private sector are addressed in detail in the resolution, too. Accordingly, the law on supporting small and medium-sized enterprises will be submitted to the National Assembly for approval, while officials are called on to improve their attitude so they can serve enterprises. In addition, provincial and municipal people’s committees must organize regular dialogues with the business community and the media at least twice a year; and effectively implement the government’s resolutions on improving the business environment and increasing national competitiveness.

Key projects assigned to MoIT

Specific responsibilities are assigned to relevant ministries and agencies for implementation. Concerning to continue perfecting the socialist-oriented market economy, the Ministry of Industry and Trade is assigned to chair and coordinate with concerned agencies to amend and supplement the Competition Law and submit it to the National Assembly for consideration before December 2017. It is also to report on progress of the project on building cross-border economic zones to the prime minister in 2017.

The ministry is also assigned prime responsibility for studying, amending, supplementing and annulling current regulations on export and import licensing and market management policies in order to facilitate businesses in line with international commitments and reduce its costs.

The Ministry of Industry and Trade will adopt new mechanisms and policies to encourage the development of private enterprises in priority sectors. It will also build a strategy for domestic trade development by 2025, with a vision to 2035, and then submit it to the prime minister for consideration and approval in 2017.

Quang Loc