While the world's largest emerging economies such as Russia, Brazil and China are slowing down, Vietnam's economy has seen steady growth at almost 7% in 2016, that will help Vietnam to be listed among the fastest growth economies in the world.Vietnamese government has recently adopted major measures to implement the country's 2016 socio-economic development plan and state budget. Gross domestic product (GDP) grows 6.7%; export turnover increases by 10%; import surplus ratio against exports is under 5%; consumer price index grows less than 5%; total development investment is about 31 per cent of the GDP; the percentage of multi-dimensional poor household rate reduces to between 1.3% to 1.5% and health insurance coverage nationwide is about 76%.
Vietnam is among top 10 fastest growth economies in 2016
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The Government sets target to maintain macroeconomic stability while controlling inflation. To ensure this objective is achievable, the government has asked all government agencies, people's committees and organisations nationwide to pull efforts to carry out their assigned tasks at a high level.
The government has asked the State Bank of Vietnam to work closely with ministries and central and local government agencies to come up with proactive monetary and fiscal policies to put inflation under the control and stabilise the macro economy so that Vietnam will achieve a rational economic development growth.
The government has asked the Ministry of Finance to co-ordinate with ministries and central and local governments to develop a pro-active national budget for 2016. The Resolution has also listed some key measures to help achieve the national budget target. One of the measures is to strictly implement the Tax Law and state budget collection missions. "In 2016, Viet Nam vows to strictly control public debt, government debt as well as foreign debt as written in the National Assembly Resolution," the document says.
The Government Resolution lists three key areas for the national economic restructuring, namely public investment; State economic groups/corporations; State Commercial banks and credit organisations. However, public investment is the core. The MPI will work closely with other ministries and government agencies to monitor and supervise the use of Official Development Aid (ODA), preferential loans from foreign donors, plus the State development investment credits and others in all public investment projects.
The Resolution calls on the Ministry of Industry and Trade (MOIT) to work out policies to diversify import markets to avoid heavy dependence on a certain market while taking measures to promote exports in a sustainable manner. "The MOIT should adopt effective measures to increase exports to potential markets, particularly commodities with high value added and high export turnover," the Government Resolution says. The document also lays emphasis on the effective use of trade protective measures as regulated by the World Trade Organisation in restrictions on imports and protecting domestic production.
The Ministry of Home Affairs and central and local government agencies are asked to strictly implement the country's Master Programme on Public Administrative Reform in the 2011-20 period and the Government's Plan on Administrative Reform from 2016-2020. The Government's Resolution asks all central and local government agencies and organisations to apply IT in their public services, particularly the Government's Resolution 36a on IT application.
According to figures published by the Government, private consumption increased by 9.3% of Vietnam in the past years, foreign direct investment was disbursed 17.4% to a high record of 14.5 billion dollars. "In 2016 and 2017, we fully believe that Vietnam can be one of the fastest growing economies" Eugenia Victorino - the leader of ANZ Bank's economic expert said.
