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Vietnam economy back on track

Publication Date : 16-06-2012

 

Vietnam Deputy Prime Minister Nguyen Xuan Phuc yesterday affirmed that the economy has overcome difficulties and has started to recover.
He said the growth of gross domestic product (GDP) at 6 per cent this year, inflation at 7-8 per cent and other targets set by the National Assembly, were possible.

He made the statement in response to concerns about economic growth and support measures for enterprises during the 3rd session of the 13th National Assembly.

He said all results related to economic growth and production activities in the second quarter were better than the first quarter.

Specifically, the growth of GDP in the second quarter reached 4.5 per cent, higher than the first quarter (at 4 per cent) and the Index of Industrial Production increased by 4.4 per cent.

Total retail and service sales in the first five months recorded VND952 trillion, 20.3 higher than the same period last year while Consumer Price Index (CPI) growth in the first six months came to nearly 3 per cent, the lowest figure in the past three years.

Last month, about 4,000 enterprises stopped operating or went bankrupt while more than 30,100 new companies have been registered.

Enterprise inventories decreased to 29.4 per cent last month from 35 per cent in March.

However, the economy has faced a lot of challenges, which have pushed the Government to keep implementing measures to boost production and trading activities, he said.

He added the government would keep implementing monetary and fiscal policies, settling bad loans, lowering interest rates and supporting enteprises to extend their markets and consume their inventories.

Besides, management of investment resources from State budget, State bonds and ODA would be improved.

Deputies also questioned restructuring of the national economy, the operation of state-owned enterprises and capabilities of state officers.
In response, Phuc said synchronous, comprehensive and effective measures to restructure the economy would be implemented to ensure growth and social security.

He said restructuring would raise the efficiency of human resources alongside the quality of education and training activities. The government would pay attention to solving all social issues raised during the economic restructuring process.

He added that state-owned enterprises would also be restructured to boost the efficiency of their operations.

However, Deputy Tran Du Lich from Ho Chi Minh City, questioned methods to minimise corruption in state-owned enterprises and the responsibility of the Government for losses associated with rampant and inefficient investment activities.

Phuc said the profile, operation and management of all state-owned enterprises would be publicised in the coming time so that their activities could come under public scrutiny.

Relevant ministries would take responsibility for the loss of state assets caused by these enterprises.

In response to concerns raised by deputies Nguyen Thai Hoc, from Phu Yen Province, and Le Thanh Van from Hai Phong, over the low capabilities and degrading morality of many state officers, Phuc said the process of recruiting state officers and assessing their work efficiency would be reviewed and adjusted if necessary.

Besides, regular inspections would be made to exclude those failing to accomplish their tasks or losing people's trust.

He said state officers would additionally be made to participate in training activities to improve their skills.

At this point, the country has more than 2 million state officers of which more than 110,000 at commune-level work directly with people.
National Assembly Chairman Nguyen Sinh Hung said the government expressed its determination to restructure state-owned enterprises, especially settling current problems at Vinalines and Vinashin that have drawn public attention.

He said government measures would curb inflation, stabilise the macro-economy as well as ensure social security and poverty reduction.

His statements wrapped up the two and a half day Q&A session with the participation of ministers of Natural Resources and Environment, Planning and investment, Public Security, Industry and Trade and Deputy Prime Minister Phuc.

 

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