Sunday, 25 Aug 2019

Vietnam’s National Assembly targets 6.6 – 6.8% 2019 GDP growth

Updated at Thursday, 08 Nov 2018, 15:19
The Hanoitimes - Key priorities in 2019 would be to stabilize macro-economic conditions and keep inflation under control, coupled with higher economic independence and national competitiveness.
Vietnam’s National Assembly, the country’s supreme legislative body, approved the resolution on socio-economic development plan for 2019, targeting the GDP growth rate of 6.6 – 6.8% with the endorsement of 92.16% of National Assembly deputies, the government portal reported. 
Illustrative photo.
Illustrative photo.
Following the plan, the consumer price index (CPI), a gauge of inflation, is expected to be around 4%, while the export growth rate is 7 – 8%. The National Assembly also targeted the trade deficit to stay below 3% of total export revenue, and social investment capital equivalent to 33 – 34% of GDP. 

The country also aimed to reduce the poverty rate by 1 – 1.5 percentage points. In poor localities and areas inhabited by ethnic minority groups, the reduction rate should be 4 percentage points. Additionally, the unemployment rate in urban area is targeted at below 4%. 

In order to fulfill the plan, the National Assembly requested the government to implement the monetary policy in an efficient and flexible manner, which is consistent with the fiscal policy. The ultimate goal would be to stabilize macro-economic conditions and take the inflation rate under control. 

The exchange rate policy should be in reflection of both Vietnam’s and world market situations, while avoiding negative impact of the adjustment of public services fees on CPI. 

According to the National Assembly, it is important to attract high quality foreign direct investment (FDI), focusing on environmentally friendly projects with cutting-edge technologies. 

The government is tasked with restructuring the state budget balance, dealing with tax evasion and transfer pricing. Moreover, there should be clear measures to reduce public, government and foreign debts. 

The plan suggested that the government should speed up the divestment and equitization process of state firms, at the same time to ensure the healthy development of the capital, monetary and real estate markets for greater transparency. 

The restructuring process of credit institutions should be in close relation with tackling bad debts and cross-ownership in the banking system. 

Prime Minister Nguyen Xuan Phuc in his assessment in August stated that the GDP growth rate in 2018 is on track to beat the 6.7% target. 

Phuc informed that all 12 economic targets set by the National Assembly for 2018 could be achieved, eight of which may exceed the expectation.
Ngoc Mai
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