Measures to address quality of economic growth

09:09 | 08/11/2016 Economy- Society

(VEN) - Ensuring the quality of growth has been identified by the government as a major goal of economic development in the fourth quarter of 2016 and ensuing years. Specific measures have been proposed to ensure successful implementation of the annual plan.

Measures to address quality of economic growth

At a regular press conference held by the government recently, Head of the Government Office, Minister Mai Tien Dung, underlined the prime minister’s opinion that it is important to ensure growth quality rather than pursuing increases in quantity. He said the government is determined to achieve an economic growth rate of 6.3-6.5 percent this year.

Economist, Dr. Tran Du Lich predicted the gross domestic product (GDP) may grow seven percent in the fourth quarter, so the annual growth rate will be 6.2-6.3 percent. In his opinion, such a growth rate is acceptable for this year. To promote sustainable development in ensuing years, Vietnam should review its economic restructuring policies as well as the quality of growth and the business environment.

To ensure the quality of growth, according to Dr. Tran Du Lich, it is necessary to concentrate on resolving short-term problems of the economy. Specifically, Vietnam needs to deal with bad debts, strengthen commercial banks and the financial market, and promote institutional reforms to build a constructive government that is ready to serve the people. These efforts are crucial to the improvement of the business and investment environment. Dr. Tran Du Lich said domestic businesses remain weak and Vietnam’s export growth depends mostly on contributions from foreign invested companies. Vietnam still has to cope with numerous difficulties including low agricultural growth, high overspending, outstanding debts related to the construction of new rural areas, low investment effectiveness, and sluggish public investment restructuring.

Regarding specific measures to boost economic growth in the fourth quarter of this year, economist Vu Dinh Anh said the government needs to encourage efforts to achieve economic growth targets while at the same time maintaining macroeconomic stability. He emphasized the importance of measures to stimulate processing and manufacturing sectors and consumer demand.

According to the World Bank, the Vietnamese government needs to maintain macroeconomic stability and ensure the quality of growth rather than striving to achieve growth targets through unsustainable measures. Efforts to stabilize the financial system and accelerate the restructuring of the banking sector will help Vietnam surmount macroeconomic weaknesses and promote growth in the medium term. Notably, Vietnam needs to further reform state-owned enterprises to increase their efficiency, WB Senior Economist Sebastian Eckardt said.

The WB economist also indicated the necessity of creating favorable conditions for domestic private companies to benefit more from value chains formed in the international integration process. 

 

Gia Huy

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