Govt pledges high investment to attain GDP growth target
HANOI – The Government has set a ratio of investment in the economy at a record high of 34-35% of gross domestic product (GDP), a move which is aimed at realizing the GDP growth target of 6.7% this year, according to Directive No. 24/CT-TTg signed on Saturday by Prime Minister Nguyen Xuan Phuc.
The 2017 GDP is estimated to be around VND5,013 trillion, or roughly US$220 billion, according to calculations by the Ministry of Planning and Investment. Therefore, the total investment capital in the economy will be equivalent to VND1,750 trillion, or a proportion of 34.9% of GDP. This is the highest ratio in recent years, according to the General Statistics Office.
The Government leader has assigned the Ministry of Planning and Investment to come up with short-term solutions which are aimed at mobilizing and disbursing investment in the rest of the year.
In addition, the ministry should soon carry out a plan to allocate and disburse funds from Government bonds; speed up the disbursement of public capital; as well as take effective measures to prop up private and foreign direct investments.
The State Bank of Vietnam is told to draw up a detailed plan to reduce interest rates for production and trade, especially towards enterprises active in processing and manufacturing sectors, while keeping a cautious eye on inflation and bad debt.
Besides, the central bank is asked to promote economic development by expanding credit growth to more than 18% this year.
Earlier, the National Assembly (NA) Standing Committee convened a session to look at the pre-feasibility study for the North-South Expressway project submitted by the Government. The NA committee agreed to forward the Government’s report on the project for the NA’s consideration at the third meeting session.
At the Government’s monthly meeting that wrapped up on Saturday, the Prime Minister stressed that ministers and heads of Government agencies would be held accountable if economic areas under their administration failed to achieve the growth targets assigned to them.
It must be pointed out “who are responsible for the growth target in each sphere” except in cases of force majeure such as natural calamities, PM Phuc is quoted in the Government website as saying.
Phuc urged the Government Office and the Prime Minister’s task force to closely supervise the implementation of Directive 24/CT-TTg on economic growth at all ministries and localities. Ministries and localities must regularly update the socio-economic situation in the country, and have measures ready to cope with any difficulties arising during the process of implementation. “This must be the focal political task” of all ministries and localities, the Prime Minister said.