Disbursement of public investment would help lift Vietnam's GDP by 0.42 percentage points

Boosting the disbursement of all planned public investment would help increase this year’s gross domestic product (GDP) by 0.42 percentage points, according to the General Statistics Office (GSO).

Public investment was regarded as the engine of growth in the context that the COVID-19 pandemic was heavily weighing on socio-economic development. – Photo laodongthudo.vn

The Vietnamese Government has identified public investment as the engine for growth to offset the growth gap caused by the COVID-19 pandemic.

GSO Director Nguyen Bich Lam said that boosting public investment would be an efficient solution to lift economic growth, estimating that every increase of one per cent in public investment disbursement would push up GDP by 0.06 percentage points.

In recent years, the disbursement rate of public investment were around 92-93 per cent of the plan. If that rate reached 100 per cent, GDP this year would increase by 0.42 percentage points.

 

Lam said that focus should be placed on handling bottlenecks in land policies and administrative procedures to boost public investment disbursement, especially for key and large-scale projects which would contribute to the economy’s production capacity such as the projects to expand Tan Son Nhat and Noi Bai international airports, the construction of Long Thanh International Airport and the North-South expressway.

GSO statistics showed that the realised investment in the economy was estimated to total VND367.9 trillion (US415.85 billion), representing an increase of just 2.2 per cent in the first quarter of this year, the lowest rate in the 2016-20 period.

In comparison, disbursed State capital rose by 13.2 per cent, a relative high rate in the context of the COVID-19 pandemic, reflecting the Government’s determination to boost the disbursement of public investment, the GSO said.

State capital accounts for 30.5 per cent of the total investment in the Vietnamese economy. It was estimated that around VND700 quadrillion in public investment would be disbursed this year. - VNS

 
 

Other News

.
PM chairs meeting on development of key EZs
PM chairs meeting on development of key EZs
BUSINESSicon  27/05/2020 

Prime Minister Nguyen Xuan Phuc chaired a meeting of permanent Government members in Hanoi on May 26 to discuss the development of key economic zones (EZs).

Coronavirus: France announces €8bn rescue plan for car industry
Coronavirus: France announces €8bn rescue plan for car industry
BUSINESSicon  27/05/2020 

President Emmanuel Macron wants France to become the top producer of clean vehicles in Europe.

Is Vietnam ready to receive new FDI wave after Covid-19?
Is Vietnam ready to receive new FDI wave after Covid-19?
BUSINESSicon  27/05/2020 

Prof Nguyen Mai, an expert on FDI, and chair of the Vietnam Association of Foreign Invested Enterprises (VAFIE), pointed out three problems in the picture of FDI in Vietnam.

Nearly US$3 billion worth of loans to BOT projects likely to become bad debt
Nearly US$3 billion worth of loans to BOT projects likely to become bad debt
BUSINESSicon  27/05/2020 

Forty-nine BOT (build-operate-transfer) transport projects have been reported as having revenue below expectations.

Da Nang kickstarts economy after COVID-19 pandemic
Da Nang kickstarts economy after COVID-19 pandemic
BUSINESSicon  27/05/2020 

The central city of Da Nang is planning a tourism stimulation programme named “Đà Nẵng Thank You” to revive its key economic industry as soon as the COVID-19 pandemic is under control in Vietnam.

Hit by Covid-19, Vietnam enterprises turn to domestic market
Hit by Covid-19, Vietnam enterprises turn to domestic market
BUSINESSicon  27/05/2020 

A market with population of nearly 100 million is more than enough for domestic firms to boost sales and expand market shares.

Vietnam ready for swift actions to boost economy
Vietnam ready for swift actions to boost economy
BUSINESSicon  26/05/2020 

The ongoing health crisis has been taking a heavy toll on the Vietnamese economy.

Numerous SOEs under special financial supervision
Numerous SOEs under special financial supervision
BUSINESSicon  26/05/2020 

Subsidiaries of SOEs like Jetstar Pacific, Angkor Air, DAP-Vinachem, and Petrolimex Laos will come under special financial supervision.

Environment Minister: Land Law disallows foreign ownership of land
Environment Minister: Land Law disallows foreign ownership of land
BUSINESSicon  26/05/2020 

The Land Law disallows the issuance of land use rights certificates to aliens, Minister of Natural Resources and Environment Tran Hong Ha told reporters on the sidelines of the National Assembly session on May 25.

Ministry proposes slashing corporate income tax by 30% for small, micro businesses
Ministry proposes slashing corporate income tax by 30% for small, micro businesses
BUSINESSicon  26/05/2020 

The Ministry of Finance has proposed that the Government reduce corporate income tax by 30% for small and micro enterprises in 2020 to help them overcome difficulties caused by the Covid-19 pandemic.

Funding shortage may leave 25 traffic projects suspended
Funding shortage may leave 25 traffic projects suspended
BUSINESSicon  26/05/2020 

As many as 25 traffic projects in Vietnam could be suspended or delayed due to capital shortages, according to the Ministry of Transport.

Local airlines would offer more rates with increasing ceiling prices
Local airlines would offer more rates with increasing ceiling prices
BUSINESSicon  26/05/2020 

Increasing ceiling rates for airfares would bring more chances for the local aviation firms to have flexible and suitable price policies on the...

China tests digital currency and policy recommendations for Viet Nam
China tests digital currency and policy recommendations for Viet Nam
BUSINESSicon  26/05/2020 

China this month started testing its sovereign digital currency, the so-called Digital Currency Electronic Payment (DCEP), putting pressure on Vietnam to research cryptocurrency in the context of international integration.

VN Trade Ministry sets up working groups for EVFTA
VN Trade Ministry sets up working groups for EVFTA
BUSINESSicon  26/05/2020 

The Import and Export Department under the Ministry of Industry and Trade has set up different working groups to implement the the EU-Viet Nam Free Trade Agreement (EVFTA).

Coronavirus: Lufthansa agrees €9bn rescue deal with Germany
Coronavirus: Lufthansa agrees €9bn rescue deal with Germany
BUSINESSicon  26/05/2020 

European markets rose on the bailout deal news, which sees Germany take a 20% stake in the firm.

EVFTA to help cover some economic losses from pandemic
EVFTA to help cover some economic losses from pandemic
BUSINESSicon  27/05/2020 

The EU-Vietnam Free Trade Agreement (EVFTA), to take effect shortly, is expected to make up for some of the losses Vietnam’s economy incurred during the COVID-19 pandemic, according to insiders.

WB: EVFTA could lift Vietnam’s exports by 12 percent by 2030
WB: EVFTA could lift Vietnam’s exports by 12 percent by 2030
BUSINESSicon  26/05/2020 

The World Bank (WB) has predicted that the EU-Vietnam Free Trade Agreement (EVFTA) could help Vietnam’s GDP and exports grow 2.4 percent and 12 percent, respectively, by 2030, the Ministry of Industry and Trade (MoIT) has reported.

Japanese firm and officials under investigation over alleged bribery
Japanese firm and officials under investigation over alleged bribery
BUSINESSicon  26/05/2020 

Minister of Finance Dinh Tien Dung has requested an urgent investigation into an alleged bribery of Vietnamese officials by Tenma Vietnam - a subsidiary of Japan’s plastic product maker Tenma Corporation.

Pharmaceutical enterprises enjoy good earnings in Q1
Pharmaceutical enterprises enjoy good earnings in Q1
BUSINESSicon  26/05/2020 

Increasing demand for medicine amid the COVID-19 pandemic has helped most pharmaceutical enterprises report positive business results in the first quarter of this year.

Vietnam hopes to redraw map of supply chains as more companies leave China
Vietnam hopes to redraw map of supply chains as more companies leave China
BUSINESSicon  26/05/2020 

Experts believe that the departure of large manufacturing corporations from China, plus the plan to boost global economic development, will bring new opportunities to Vietnam.

 
 
 
Leave your comment on an article

OR QUICK LOGIN