PM sees 2018 GDP growth between 6.4-6.8 percent

10:48 | 06/07/2017 Economy- Society

(VEN) - The draft instruction of the prime minister on the socio-economic development plan and the state budget estimates for 2018 outlines next year’s gross domestic product (GDP) growth target ranging from 6.4 to 6.8 percent.

The draft instruction also states that state budget revenues would contribute around 21 percent of GDP in 2018. Domestic revenue estimates (excluding revenues from crude oil, land use fees and lottery receipts) are expected to increase by an average of 12-14 percent over the estimate for 2017, while estimated revenues from import-export activities are expected to increase by an average of 5-7 percent compared to the estimate for 2017.

Next year is the mid-term of the five-year socio-economic development plan for the 2016-2020 period, which is important in accelerating the achievements of the five-year socio-economic development objectives for 2016-2020 and the socio-economic development strategy for 2011-2020.

According to the document, the development of the socio-economic plan and the state budget estimates for 2018 should be in line with the five-year socio-economic development plan for the 2016-2020 period, the medium-term financial-state budget plan and public investment plan for the 2016-2020 period. In addition, it should be in line with the three resolutions issued at the fifth plenary meeting of the 12th Communist Party of Vietnam Central Committee (CPVCC), including improving socialist-oriented market economy institutions, enhancing effectiveness of state-owned enterprises, and spurring the development of the private sector into an important engine of the socialist-oriented market economy.

According to the Ministry of Planning and Investment, the Vietnamese economy in the first five months of 2017 showed positive signs of recovery. This year’s GDP growth could reach 6.7 percent, creating a solid basis for achieving the 2018 growth target.

Economists say that the government’s determination to achieve GDP growth in 2018 is in line with the forecasts of international organizations. Specifically, the Asian Development Bank (ADB) forecasts 6.7 percent GDP growth for Vietnam in 2018 due to the development of manufacturing activities, construction, retail and wholesale trade, while the World Bank (WB) foresees Vietnam’s economy growing at a rate of 6.4 percent in 2018 due to a sharp increase in domestic demand and export-oriented production.

In addition to favorable conditions, the economy will face many difficulties and challenges in 2018 due to complex global and regional economic and political developments. Therefore, the prime minister has requested ministries, departments and localities to implement measures to restructure credit institutions associated with handling bad debt, improve the business and investment environment and encourage business to conduct technology renovation.

The prime minister’s draft instruction requires ministries, departments and localities to accelerate the process of concretizing the party’s guidelines and developing legal documents for improving the business and investment environment and supporting business development, especially of small and medium-sized enterprises.

Chu Huynh