Deputy Vũ Tiến Lộc from Thái Bình Province speaks at the National Assembly’s discussion on socio-economic and State budget performance in 2019. VNA/VNS Photo Dương Giang

HÀ NỘI — The National Assembly (NA) began an important discussion on socio-economic development and State budget performance in 2019 and plans for 2020 on Wednesday.

Many deputies appreciated the socio-economic results achieved in 2019 and concurred with the findings and solutions stated in the Government's report.

They said that Việt Nam had attained comprehensive and impressive achievements in the face of many difficulties.

Citing the report, Deputy Vũ Tiến Lộc from Thái Bình Province said all 12 socio-economic targets had been fulfilled. Macroeconomic stability had been maintained while inflation and unemployment were kept below three per cent and four per cent, respectively. Economic growth for 2019 was estimated at 6.8 per cent.

2019 was the first year the processing and manufacturing sector had become the main driving force of the economy. The percentage of exports and investments in the domestic private sector had also increased.

However, he said, maintaining the growth rate of 6.8 per cent and improving the quality of growth next year would be a challenge given unfavourable developments in the world and the domestic economic situation. According to him, the main target was enhancing the competitiveness of the business community.

“The fact that Việt Nam slipped one place in the World Bank’s Doing Business report which was released recently implies that although the country has made great efforts to overcome difficulties, other economies are changing faster and becoming more competitive." 

"Without strong reform, we will fall behind, ” he said.

Regarding solutions needed to push the development of household businesses, the deputy said by definition household businesses were small and micro enterprise. Thus, we could not eliminate household businesses or ask them to become enterprises, adding that regulations for household businesses would be included in the revised Law on Enterprises.

“Only by doing so, can we ensure the effective development of household businesses and equity between them and other types of enterprises," he said.

Bắc Ninh Province Deputy Nguyễn Như So said in the first nine months of this year, investment capital in the non-state sector reached VNĐ624.6 trillion (US$26.9 billion), up 16.9 per cent over the same period last year, the highest in the economic sector. It showed the private economy was one of the important driving forces, contributing over 40 per cent of GDP and creating 1.2 million jobs per year. However, the development of the economy in the private sector hadn’t met its potential.

So suggested that a breakthrough policy should be issued to remove obstacles for the development of private enterprises.

It was necessary for the Government to encourage more private investors take part in fields which had been monopolised by the State such as infrastructure development and construction of airports and highways to create a level playing field.

Deputy Hoàng Quang Hàm from Phú Thọ Province said the country's economy had developed rapidly and stably but Việt Nam was still among countries with a low average income, and had not yet "turned into a dragon or a tiger".

Thirty years ago, the world's GDP per capita was over $4,000, higher than $100 of Việt Nam, but the gap widened to $8,300 in 2017 and $8,400 in 2018, he said.

To avoid the risk of falling into the middle income trap, he said the Government should focus on labour skills, the development and application of science and technology and start-ups.

“Only by improving labour skills and promoting scientific applications can we achieve growth with depth,” he said, adding that it required strong innovation and close connections between training facilities and enterprises.

According to Lưu Thành Công, a deputy from Vĩnh Long Province, the biggest obstacle for farmers was not capital or farming techniques but information about the market.

Farmers currently only receive information from agents and traders so they do not know whether their production follows market rules.

“The situation that despite having bumper crops, farmers have to sell their produce at extremely low prices will continue to occur unless official information on market prices is provided to them,” he said.

Công suggested farmers should be trained so they could decide on what crops of animals would best meet market demand. — VNS