The Government is determined to weather all setbacks in order to attain the highest possible economic growth, Prime Minister Nguyễn Xuân Phúc said at the first regular meeting of the new Government yesterday. — Photo VGP

HÀ NỘI – The Government is determined to weather all setbacks in order to attain the highest possible economic growth, Prime Minister Nguyễn Xuân Phúc said at the first regular meeting of the new Government yesterday.

Cabinet members discussed the country’s socio-economic development during the first seven months of this year and according to a report presented by the Ministry of Planning and Investment, between January and July, inflation rose 1.82 per cent, less than the figure recorded in the same period last year.

Of note, fishery exports expanded by 3.9 per cent as compared to a 7 per cent drop in the corresponding 2015 period.

During the period under review, disbursement of foreign direct investment (FDI) was estimated at US$8.5 billion out of $13 billion registered capital.

Thanks to implementation of the Government’s resolutions on administrative reform and business climate improvement, the number of new businesses increased by 23 per cent, and up to 16,700 failing businesses resumed normal operations, the ministry reported.

However, it also pointed out a range of challenges facing the country, such as natural disasters, drought and saltwater intrusion that have hampered efforts to reach the national growth target.

Among other problems cited: Tax collection which has just met 49.4 per cent of the yearly target; sluggish exports, which edged up only 5.3 per cent year-on-year, a far cry from the 10 per cent set for this year; smuggling and trade fraud.

Against this backdrop, the ministry presented three scenarios of economic growth in 2016, with the first targeting 6.27 per cent, the second 6.5 per cent, and the third  6.7 per cent, the target set by the National Assembly.

However, the ministry conceded that the 6.7 per cent target would be hard to achieve without great endeavours of all sectors, especially agro-forestry, fishery and the industrial sectors.

Vietnam Airlines hacking

Minister of Information and Communications Trương Minh Tuấn described the hacking of the Vietnam Airlines web site last week as sophisticated and dangerous, causing losses to Việt Nam’s information infrastructure.

He pointed to limitations in information sharing that hindered the repair and recovery work after the hack. He said more than half of Vietnamese agencies and organisations have yet to set forth their own standardised process in response to cyber attacks, and asked them to lay out plans and conduct regular exercises on information protection.

The PM commented that this was a serious incident, asking ministries, agencies, economic groups and corporations to work with the Ministry of Public Security to screen their network security systems and deter future cyber attacks.

While approving the Ministry of Planning and Investment’s three development scenarios and recognising difficulties in achieving a 6.7 per cent GDP growth, the PM stated that the Government is determined to weather all setbacks and challenges to attain the highest possible outcome.

He reiterated that the Government would continue giving top priority to safeguarding macro-economic stability, along with managing inflation and maintaining economic growth, and reducing budget overspending to achieve a positive budget balance.

Moving forward, domestic consumption must be accelerated, investment attraction stepped up, export markets fully tapped and imports must be put under control, he said.

He reminded ministries, sectors and localities to lend a practical helping hand to businesses so they could sharpen their competitive edge. The finance sector needs to unblock existing hindrances to facilitate capital access for businesses, especially small and medium-sized enterprises.

Regarding the marine environmental disaster in four central provinces, caused by Formosa, he asked ministries, sectors and localities to concentrate on assisting affected residents and ensure that Formosa’s compensation money is allocated to the right people. He called on Formosa to strictly implement its commitments. – VNS