Tuesday, December 19 2017

VietNamNews

Sectors face restructuring axe

Update: April, 18/2012 - 10:30

 

A worker of the Thai Nguyen Iron and Steel Co checks products. Metals are one of the seven sectors targeted in the nation's economic restructuring plan. — VNA/VNS Photo Ngoc Ha
HA NOI — A just released general economic restructuring scheme gives priorities to the development of seven sector groups until 2020.

Composed and completed by the Ministry of Planning and Investment, the scheme will be submitted to the Standing Committee of the National Assembly this week.

The sector groups are metallurgy, petro-chemicals, shipbuilding and vehicle production, electronics, green industries and recycling energies, logistics and tourism.

The scheme is aimed at restructuring economic growth towards improving the economy's effectiveness, productivity and competitiveness to 2015 and orientations by 2020.

The scheme comprises four parts with 32 pages. Part 1 reviews achievements and shortcomings of the economy and reasons. Part 2 maps out general targets, principles and orientations of the economic restructuring. Part 3 is a system of specific measures and Part 4 is implementation.

The Standing Committee will collect opinions of members tomorrow before submitting them to the National Assembly.

The scheme document said: "The development of seven sector groups will involve sharpening competitive advantages and at the same time gradually replacing some industries which use a huge volume of labourers such as textiles and garments, leather and footwear, and wood and wooden furniture."

Under the programme, telecommunications and IT infrastructure would be modernised and Viet Nam would apply state-of-the-art technologies to generate breakthrough development for the IT industry.

In terms of agriculture, manufacturing and services, the scheme emphasises higher effectiveness and proportion of value-added products, as well as higher contributions of these sectors to the country's GDP and exports.

It has been estimated that the proportion of agriculture of the total national economy would decrease to 15 per cent by 2020 from 80 per cent now, whereas the ratio of manufacturing and services would climb to 85 per cent from the current rate at 20 per cent.

Solutions for restructuring implementation would focus on improving the quality of master plans of sectors, urban areas, industrial zones and villages.

The ministry also devised measures to renovate systems on distribution, management and use of State-owned capital resources as well as improving the quality of State-owned enterprises.

The programme also sets a target to keep inflation at 4-6 per cent per year. The financial policy would reduce public expenditure and State over-spending to 3-3.5 per cent per year.

The Government would gradually reduce corporate income tax to 22-23 per cent by 2015 and 20 per cent by 2020 from the current 25 per cent.

The State would play a key role in building and developing infrastructure and offering appropriate policies to attract foreign and local investors in a bid to bolster the sectors' developments.

The ministry also mapped out solutions to help improve the quality of private firms and management effectiveness of foreign-invested projects while the Government would continue completing legal frameworks for economic development. — VNS

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