Sep 05, 2020 / 17:01

Vietnam aims to reduce reliance on foreign supply chains

The Hanoitimes - To realize this goal, the priority should be the domestic market with a population of nearly 100 million, Prime Minister Nguyen Xuan Phuc has said.

Vietnam would continue to build an independent and self-reliant economy, aiming to reduce its dependence on foreign input materials and supply chains, according to Prime Minister Nguyen Xuan Phuc.

 Prime Minister Nguyen Xuan Phuc at the meeting. Photo: VGP. 

To realize this goal, the priority should be the domestic market with a population of nearly 100 million, stated Mr. Phuc at a monthly government meeting on September 4.

In addition to support for small and medium enterprises, large ones, especially those at the top of each economic sector with high spillover effects, should also be included in the government’s supporting programs, Mr. Phuc added.

Regardless of the circumstances, Vietnam remains steadfast in pursuing the dual target of both containing the pandemic and boosting economic recovery, so that the economy could reach the highest growth rate possible, Mr. Phuc stated.

Mr. Phuc requested government agencies to come up with further monetary and fiscal relief measures while keeping a stable macro-economic foundation and inflation under control.

In the coming time, Mr. Phuc expected the banking sector to lower interest rates for loans, including existing ones.

Vietnam is set to continue boosting exports, promoting domestic consumption, and attract investment, particularly that from foreign investors looking to diversify their value chains.

At a time of crisis, it is more urgent for Vietnam to address current shortcomings of the economy and adopt a digital strategy for economic restructuring. This would be the way to prepare for a next development phase in the post-Covid-19 period, Mr. Phuc suggested.

The Ministry of Planning and Investment is tasked with grasping opportunities from a shift in investment activities to attract high-quality FDI projects.

The State Bank of Vietnam would be responsible for finalizing the legal framework for fintech and e-verification, and the Ministry of Information and Communications for soon putting in motion the pilot project on direct carrier billing services, also known as Mobile Money.

Regarding the reopening of international commercial flights to and from Vietnam, the Vietnamese PM stressed the strict compliance with Covid-19 preventive measures.

At the meeting, Minister of Planning and Investment Nguyen Chi Dung said the government is targeting an economic growth rate of 2% for this year in normal conditions and 2.5% if favorable factors emerge. In 2021, GDP growth is expected to rebound to around 6.7% as the government continues to look for a rapid and sustainable economic growth rate.