Driving forces for Viet Nam’s economic growth need to be maintained not only in 2018, but beyond, Prime Minister Nguyễn Xuân Phúc said at a Government meeting yesterday. — VNA/VNS Thống Nhất

HÀ NỘI – Driving forces for Viet Nam’s economic growth need to be maintained not only in 2018, but beyond, Prime Minister Nguyễn Xuân Phúc said at a Government meeting yesterday.

“We should continue working to create market confidence and win trust of enterprises so as to branch out business and production”, he stressed.

Regarding the country’s socio-economic development, PM Phúc noted that four macroeconomic targets have been ensured, including sound growth of gross domestic production (GDP), price stability, reduction of unemployment rate and net export turnover. The nation’s unemployment index fell 2.2 per cent for the first time.

Thanks to institutional reform, the Government’s direction and benefits from global integration, the economy grew in the second quarter.

High-tech application has improved labour productivity, he said, adding that Viet Nam’s logistics index moved five steps to be in the top three among ASEAN members, just behind Thailand and Singapore.

However, he pointed out some short-term risks that the economy may encounter, namely impacts of the US-China trade war, trade deficit, reversing foreign direct investment flow, reducing remittances and trade protectionism.

“Our foreign currency reserve is now at US$63 billion, but it cannot ensure that the economy is able to control the exchange rate amid impacts of global financial market”, he said, requesting flexible management of the exchange rate.

PM Phúc agreed not to change financial policy in the fiscal year 2018, comprising gasoline tax, VAT and prices of commodities and public services. He ordered tight control of education and health care service prices to prevent inflation soaring.

He asked ministries to tighten fiscal discipline, complete budget collection plans and accelerate disbursement of public investment in line with plans.

Additionally, he urged the finalisation of public investment law and construction of key infrastructure works, especially in the transport sector.

Besides export markets, local firms should pay attention to the nearly 100 million strong domestic market by improving service quality and food hygiene and safety, he noted.

Regarding slow equitisation in some State-owned companies, PM Phúc called for inspections in relevant localities.

Ministries and agencies must complete the draft decree on amending and supplementing business conditions, he said, recommending cutting the number of commodities that must go through specialied inspections by half.

Agricultural reform must be promoted, encouraging firms and co-operatives to land more investment in the sector to generate incomes for farmers. This should be made in companion with market reorganisation in processing and manufacturing for sustainable development for post 2020.

As economic growth is closely attached to local livelihoods and environment, the Government leader stressed environmental protection and social order and safety.

He lauded the police forces for busting a large-scale drug trafficking ring in Sơn La Province and other serious cases.

He ordered the Ministry of Agriculture and Rural Development and relevant ministries and agencies to devise specific programmes in response to natural disasters.

Mentioning critical losses in terms of officials following wrongdoings in the Ministry of Public Security and the Ministry of Information and Communications, PM Phúc called on Cabinet members to set the example in implementing the Resolution adopted at the 4th plenum of the 12th Communist Party of Việt Nam Central Committee on enhancing Party building and rectification, and preventing and curbing ideological, ethical and lifestyle degradation as well as the manifestation of “self-evolution” and “self-transformation” inside the Party.

Việt Nam witnesses robust socio-economic development in 7 months

 Việt Nam recorded robust socio-economic development in the first seven months of the year, with a stable macro-economy and good control over inflation in the context of the escalating US-China trade war, said Minister-Chairman of the Government Office, Mai Tiến Dũng. 
Speaking at a press conference after a regular government meeting yesterday, Dũng said the consumer price index (CPI) in July dropped by 0.09 per cent from the previous month after increasing for three consecutive months. The average CPI in the seven-month period went up 3.45 per cent, which was lower than the 3.91 per cent recorded in the same period last year, he said. 
The industry sector was the key driving force behind the nation’s economic growth. The industrial production index in July shot up 14.3 per cent compared to the same month in 2017, which was its highest expansion since February. 
The agricultural sector also posted impressive results, with aquatic output surging 5.7 per cent. 
The stock market made a remarkable recovery when the VN-Index on the Hồ Chí Minh Stock Exchange reached 934.08 points on July 24, and the total capitalisation value of the stock market rose 8.3 per cent from the end of 2017. 
During the January-July period, Việt Nam enjoyed a trade surplus of US$3.1 billion, equivalent to 2.3 per cent of export revenue. 
Regarding foreign direct investment (FDI), Dũng pointed out the sound growth in foreign capital. Foreign firms registered to invest nearly US$23 billion in Việt Nam while FDI disbursement was estimated at more than $9.8 billion, an on-year surge of 8.8 per cent. 
Positive signs were also seen in the private sector. Nearly 75,800 new enterprises were established nationwide in the first seven months of the year with total registered capital of VNĐ771 trillion ($33.34 billion), an on-year rise of 3.9 per cent in the number of firms and a 11.6-per cent rise in terms of capital. 
Meanwhile, 18,696 companies resumed operations, up 6.5 per cent from the same period last year. 
International organisations recognised Việt Nam’s economic reform efforts, and gave optimistic outlooks for the nation’s economic growth. Of them, the Asian Development Bank (ADB) forecast that the Vietnamese economy will expand 7.1 per cent this year,  while Standard Chartered predicted economic growth of 7 per cent and inflation of around 4 per cent. 
In the United Nations’ sustainable development goal (SDG) index, Việt Nam moved up 11 places to rank 57th out of 156 countries and territories, and third in ASEAN, just behind Singapore and Malaysia. 
Regarding the Global Innovative Index 2018 (GII Index 2018), Việt Nam rose two positions to 45th among 124 countries and territories, and 4th in ASEAN after Singapore, Malaysia, and Thailand. 
The latest report from the World Bank (WB) indicated that Việt Nam’s Logistics Performance Index had moved it 25 places to 39th place among 160 surveyed countries. 
Dũng also pointed out shortcomings in the socio-economic situation, including complicated weather developments, price hike pressures on the macro-economy, barriers facing local firms looking to expand, and slow equitisation of state-owned enterprises. 
He said that at the Government meeting, Prime Minister Nguyễn Xuân Phúc ordered relevant sides to work on solutions to effectively address these issues. — VNS