Vietnam gov’t eyes 6.5%-7% GDP growth under 2016-2020 dev’t plan

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VN city centerThe Vietnamese government has introduced a holistic socioeconomic development plan designed to turn the country into a modern, industrialized economy by 2020.

Deputy Prime Minister Nguyen Xuan Phuc, in his recent presentation before the 13th National Assembly of the government’s 2016-2020 economic growth strategy, said the administration target a 6.5% to 7% annual growth in the next five years.

By 2020, too, gross domestic product (GDP) per capita is expected to reach around US$3,200 to $3,500. Total social investment will account for 32% to 34% of GDP, while state budget spending will be kept down to around 4% of GDP.

The administration intends to pursue a national development plan that targets three focus areas: economy, society, and environment, according to a report by the state-run VGP News.

On the economic aspect, the government will strive for macro-economic stability and higher economic growth through measures that foster economic restructuring; higher productivity, efficiency, and competitiveness; and further international integration.

Phuc said the action plan is to develop a “socialist oriented-market economy” by improving and modernizing market regulations, ensuring fair and transparent competition among different types of enterprises, regulating interest rates and exchange rates according to market rules, raising foreign reserves, gradually restructuring the state budget collection and spending, and reining in government overspending.

Additionally, Vietnam will speed up the restructuring of state-owned enterprises, focus on rationalization of investments and withdrawal of non-core ones, and create favorable ways for local enterprises, especially private ones, to thrive.

Moreover, over the next few years, there will be sustained efforts to improve manpower quality, enhance capability for innovation, facilitate adoption of scientific applications, as well as deepen labor productivity.

The government will also focus on administrative reform for the benefit of both people and enterprises, “building the public staff contingent with good virtue, morals, competence, responsibility and profession.”

It also aims to encourage the use of automation and  IT applications in government, as well as the building of a national database.

The fast-growing Southeast Asian economy is likewise keen to step up international integration, especially with its peers in the Association of Southeast Asian Nations, while targeting the full implementation of its international commitments and free trade agreements, as well as the negotiation of new FTAs.

Economic growth slows in Q1

Meanwhile, the nation’s GDP saw a year-on-year growth in the first quarter of the year of 5.46%, lower than the 6.12% of 2015 and 5.9% of 2011, reported Bui Van Lam, director general of the General Statistics Office.

According to Lam, the national economy in the first quarter encountered several challenges due to domestic difficulties, unpredictable oil prices, and volatile financial developments in the global market.

Market competition among countries with similar production capacities was stronger, commented the director general.

In addition, on the local front, the record cold weather in north Vietnam, serious droughts in the central area and the central highlands, and the saltwater intrusion in the Mekong Delta Region also impacted on production in early 2016.

Photo: Hieucd