Vast room for further economic growth, says PM

The PM made the point on July 3 in Ha Noi while chairing a Government’s regular meeting for June with local leaders of 63 provinces and cities to discus on socio-economic performance in H1 and solutions in the rest of the year.

Domestic economy in “good health”

PM Phuc assessed that the economy operated properly in the first six months.

Specifically, the macro-economy was stable. Inflation rate was kept at low level, rising only 0.2%. Growth pace rebounded quickly with 5.15% in Q1 and 6.17% in Q2. These were a spectacular growth despite international and regional difficulties. GDP expanded 5.73% in the first six months of which agricultural and service sectors grew rapidly.

The number of international guests surged 30%. Viet Nam was one of 12 leading countries in terms of tourism development. Credit growth was 8%, the highest rate over the last six years. Stock reached record high in nine years since March 2008.

Export reached nearly 19%, higher than the same period last year. In the January-June period, trade turnover reached about US$ 200 billion.

The Government’s regular meeting for June, Ha Noi, July 3, 2017 - Photo: VGP

Budget collection surged sharply. The amount of FDI reached over US$ 19 billion, up 54.8% in value. FDI disbursement valued US$ 7.7 billion, up 6.5% against the same period last year. Over 61,000 enterprises were founded with a total value of VND 600 trillion.

However, PM Phuc also pointed out weaknesses and challenges. Purchasing of agricultural products coped with difficulties. Growth rates of the industry and construction sectors were lower than the same period last year, including mining (down 8.2%) and petroleum (11.6%).

Despite business and production development, enterprises still encountered difficulties, including high production costs. The disbursement progress of public projects remained slow, meeting only 30% of the year target. The equitization of SOEs was slow in which 20 enterprises were equitized and plans on equitization of 21 others were built. Only VND 11.6 billion of capital withdrawal was implemented instead of VND 60 trillion of preset plan.

Other social pressing issues have yet been resolved namely food hygiene, large-scale food poisoning cases, medical check-up inefficiency, social insurance debts, school violence, children harassment, and environmental pollution.

According to PM Phuc, tasks and missions in the rest of the year are extremely heavy. It is necessary to attain a 7.42% GDP growth pace in H2 in an effort to achieve the set 6.7% rate in 2017. “The goal is high but feasible as key economic fields are rebounding amidst domestic and international advantages,” said PM Phuc. “There are wide doors for growth”, he added. However, “we must spare no effort; take drastic actions; make stronger reforms, especially in ministries, key economic regions, big cities.”

Strong voices to localities

PM Phuc recommended Government members and local leaders to focus on specific solutions for the Government, sectors, and localities.

He called on delegates to propose measures to surmount difficulties and obstacles especially in agricultural production and consumption; disbursement of public investment projects, SOEs equtization, and administrative reform.

PM Phuc stressed the need to give local leaders stronger power instead of applying procedures from central level and attach more importance to social issues.

“In the first half, the Government issued a large number of mechanisms, solutions, synchronous policies. However, the implementation remained slowly among a proportion of public officials and staff,” PM Phuc stressed.