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PM Phúc asks for 6.5% annual economic growth

Update: October, 04/2016 - 09:00
 Prime Minister Nguyễn Xuân Phúc urged ministries, industries and localities to make all efforts to achieve annual economic growth of 6.3 to 6.5 per cent. — VNA/VNS Photo 

HÀ NỘI — Prime Minister Nguyễn Xuân Phúc urged ministries, industries and localities to make all efforts to achieve annual economic growth of 6.3 to 6.5 per cent.

He was speaking at the Cabinet’s regular monthly meeting which convened yesterday, with an agenda focusing on socio-economic development and institutional building.

The PM said the gross domestic product (GDP) growth rate in the first nine months of the year was only 5.92 per cent, lower than the same period last year. To achieve the government’s annual GDP growth target, the economy needed to expand 7.1 to 7.3 per cent in the 4th quarter.

Although this target was high, it was achievable because the economy often had better performance in the last quarter, he said.

Despite the lower-than-expected growth rate, the economy enjoyed some upbeat news in the first nine months which include increases in both foreign direct investments and trade surplus, according to PM Phúc.

Overseas remittance was high, with much of it being spent on production activities. The number of businesses increased with more than 91,000 new businesses, he said.

The PM also acknowledged the rapid changes in agriculture over recent months.

While the sector experienced a contraction of 0.18 per cent in the first half of the year, it ended up expanding 0.65 per cent by the end of the 3rd quarter.

Many localities had good results in budget collection and spending of investment capitals, the PM said.

To attain the annual GDP target of 6.3 to 6.5 per cent, the PM urged the government system to create favourable conditions and remove all obstacles for businesses and people.

“Determination is not enough. We need to have concrete solutions,” the PM said.

“The Asia Development Bank has forecasted Việt Nam’s economy will achieve a 6 per cent growth this year due to objective reasons, namely fish deaths in the central region, droughts, floods, storms and a reduction in mine ore exploitation. We must take drastic measures to reach beyond the ADB’s forecast,” he said.

He noted the risk of insufficient power supply for production, businesses and daily life and urged solutions in order realise both short-term and long-term development goals.

The PM also asked ministries and sectors to review their policies and repair their shortcomings to create a good environment for businesses.

“We should not only care about the goals for 2016, but also for those of 2017 and a medium-term plan for 2016-2021,” he said.

Selling stakes in SOEs

Prime Minister Nguyễn Xuân Phúc has emphasised the need to publicly choose qualified consultant firms to prevent state capital losses caused by wrong stake valuations while selling State Capital Investment Corporation (SCIC) business shares. 

He gave the instruction after hearing Minister of Finance Đinh Tiến Dũng’s report on the SCIC’s selling of its shares in enterprises listed on the stock market or those in the unlisted public company market (Upcom) during the regular Cabinet meeting yesterday. 

The SCIC reported that it successfully sold stakes in 12 enterprises in 2014 and 2015.

According to the finance ministry, the corporation’s divestment over the years is in line with the law and helps hasten the selling of State capital in the State-owned enterprises. 

Established in 2006, the SCIC is currently managing State capital in over 500 enterprises operating in different sectors, ranging from financial services to energy, manufacturing, IT, telecommunications, transportation, consumer products and health care. – VNS 

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