One of Vietnam's key priorities is to develop the private sector by creating a favorable business environments for the benefits of all economic groups, according to Prime Minister Nguyen Xuan Phuc.
Prime Minister Nguyen Xuan Phuc. Source: VGP.
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According to Phuc, the government aims to ensure greater efficiency in public investment and capital utilization. Additionally, Phuc stressed the necessary to implement the privatization and divestment process of state-owned enterprises (SOEs) in a transparent and smooth manner, in turn maximizing the benefits of the state.
In the first nine months of 2018, 20 major SOEs raised VND20.3 trillion (US$873.38 million) through from their respective initial public offering (IPO). Of the total, VND7.9 trillion (US$339.88 million) were from the divestment process, totaling VND170 trillion (US$7.31 billion) as of present.
The government has approved the restructuring scheme of 51 credit institutions and decreased bad debts in the banking sector to around 2%. According to statistics of the State Bank of Vietnam (SBV), the bad debt ratio as of June 2018 stood at 2.09%, down 0.37% against the end of 2016. Meanwhile, the capital adequacy ratio (CAR) of the banking sector currently reaches 12.27%, 3.27% higher than the requirement.
GDP growth target in 2019 projected to reach 6.6 - 6.8%
In the context of global uncertainties, the government set GDP growth target in 2019 of 6.6 - 6.8%, and the inflation rate of 4%. Vietnam also set sight on reducing the poverty rate by 1 - 1.5%, and keeping the unemployment rate in urban areas below 4%.
The PM said a flexible and cautious management of the monetary policy in relation with the fiscal policy is key to achieve these targets. Vietnam will push forward with stabilizing the foreign exchange and gold markets, while increasing its foreign exchange reserves.
Vietnam's nominal GDP in 2018 is forecast to stand at nearly VND5,555 trillion (US$240.5 billion) equivalent to a growth rate of 6.7%, leading to GDP per capita of US$2,540, up 6.3% year-on-year.
In addition to its bright prospect, Vietnam is considered one of the fastest growing economies in the region and on global scale, Phuc added.
The result is partly thanks to the government's effort in removing 50% of administrative procedures, in which 61% of business conditions and 60% of specialized inspections for trade activities have been removed or simplified, Phuc continued.
Vietnam is regarded as one of the top 10 countries with strong commitment on reforming tax policies, he concluded.
