State budget overspending will be reduced to below 3.5 percent of GDP by 2020, while public debts, government debts and the country’s foreign debts will not exceed 65 percent, 54 percent and 50 percent, respectively, of GDP annually in 2016-2020. 

These goals were set in Resolution on the economic restructuring plan in 2016-2020 which was adopted by 82.39 percent of National Assembly deputies during their plenary session in the afternoon of November 8.

Existent non-performing loans in the national economy will be curbed to below 3 percent, while the capitalisation of the stock market and the bond market will make up 70 percent and 30 percent of GDP, and at least 1 million businesses will be set up by 2020, among other goals.

The resolution stressed the need to follow closely the Party guidelines and policies, especially 12 th Party Central Committee Resolution 05-NQ/TW dated November 1, 2016, to build a growth model measured by labour productivity, the quality and competitiveness of the national economy, and mobilise, allocate and use resources efficiently based on the market’s signals and rules.

The quality of growth should be enhanced and the growth model, which used to rest on investment and exports, should be gradually based on investment, export and the local market. It should be estimated by labour productivity and quality, scientific and technological applications and innovations, the resolution said.

Internal resources should be fully tapped in combination with attracting and using efficiently external resources. The macro-economy stability must be maintained and economic growth must go along with social advancement, progress and justice, the safeguard of defence, security and ecology, scientific and technological applications, human resources quality and workforce restructuring, the document stressed.

The implementation should keep abreast with the market life, and the development of the private sector should be regarded as an important driving force in economic development.

The resolution also mentioned to tackling problems existed in the previous economic restructuring period to deter their effects on socio-economic achievements.

The economic restructuring should be coupled with reshuffling the administration, stepping up the administrative reform, and improving the quality of public services. 

The country’s free trade agreements should be soundly implemented to proactively make the best use of international integration and the fourth industrial revolution to ensure economic growth is well associated with the environmental protection and recovery and climate change adaptation, the resolution emphasised.

Key tasks were also identified, including restructuring public investment, state-owned enterprises and credit organisations; rearranging State budget and the public sector; promoting the development of the private sector and reeling in foreign direct investment; modernizing the planning and structuring of sectors and economic zones with regard to increasing productivity, quality, and efficiency and speeding up international economic integration; forming and developing various markets, including the finance market, the land use right market, the labour market and the science and technology market in a uniform fashion.

Legislators debate draft laws on tourism, SME support

A number of draft laws were discussed at the ongoing second session of the 14th National Assembly in Hanoi on November 8.

In the morning, deputies worked in groups deliberating the irrigation bill and the draft revised law on tourism.

In the afternoon, Minister of Planning and Investment Nguyen Chi Dung and Chairman of the NA Committee for Economic Affairs Vu Hong Thanh delivered reports on the draft law on support to small-and medium-sized enterprises (SMEs).

After that, the legislators discussed the draft revised resolution on amendments and supplements to some articles in Resolution No.55/2010/QH12 on exemption and reduction of agricultural land use tax.

Deputies also heard deliveries on the draft resolution on economic reshuffle blueprint in the 2016-2020 period, and later voted to approve the whole document.

On November 9, the NA will touch upon the draft law on planning and vote for the adoption of the five-year financial plan.

Lawmakers are expected to discuss in groups the draft laws on planning, and support to SMEs.

They will also hear reports and debate in groups the draft resolution on pilot granting of e-visa for foreign visitors as well as the draft law on guard force and another on amendments and supplements of conditional business sectors and lines under the Law on Investment.

Draft irrigation law promises better life for farmers

The draft law on irrigation presented at the second meeting of the 14th National Assembly is expected to ensure requirements of sustainable socio-economic development, especially the development of agriculture and rural areas, thus helping improve the material and spiritual life of people, including farmers.

Le Viet Chu, a deputy from the central province of Quang Ngai, suggested expanding the law’s coverage to the management and use of water resources, saying water supply should be restricted to inefficient users.

He also proposed rolling out market-based water pricing policy in order to encourage the economical and efficient use of the resources.

Tran Thi Quoc Khanh, a Hanoi deputy, expressed her approval for transferring irrigation fees to service costs in a bid to avoid wasteful practices and irresponsibility for water resources protection.

To ease difficulties faced by people, especially those in disadvantaged areas, Khanh proposed the Government and relevant ministries and agencies re-evaluate the use of irrigation facilities to ensure the economical use of water as well as the reuse of the resources.

Nguyen Ngoc Phuong from the central province of Quang Binh underlined the need to asset impacts of irrigation facilities on the environment and people’s life, citing great losses caused by irrigation facilities recently.

Ton Ngoc Hanh from the southern province of Binh Phuoc suggested encouraging the involvement of different economic sectors in the construction, management and use of irrigation systems.

However, the State should develop preferential policies and offer tax incentives to investors so as to lure private businesses to this field, the deputy said.

Revised law should facilitate tourism’s transformation to key industry

Tourism should be developed into a spearhead industry, and thus it is necessary to amend the existing tourism law to remove obstacles for the sector’s growth, National Assembly (NA) deputies have said. 

The draft revised tourism law was the focus of group discussions in the NA in the morning of November 8, during the 14th parliament’s second session. 

Many deputies said although significant improvements have been made in tourism, that growth has yet to match the sector’s potential while new problems have emerged. 

Deputy Pham Phu Quoc of Ho Chi Minh City said the revised law should be oriented towards the goal of turning tourism into a key sector of the economy. It needs to be updated with viewpoints, targets and strategic solutions for tourism development by 2020 with a view to 2030. 

Van Thi Bach Tuyet, another deputy of HCM City, said rapid growth or profit in tourism should not be achieved at the cost of quality or toleration of foreign firms’ illegal activities. 

She asked the drafting board to ensure a favourable and efficient legal framework for tourism development. 

Regarding Article 32 on conditions for operating in travel-related business, some deputies said tourism is a conditional business line, and those who want to provide travel services must have license as it relates to diplomacy and national security. However, current regulations in the draft remain too simple. 

If those regulations are not amended, anyone can open a travel company, which can complicate Vietnam’s tourism market. Meanwhile, there remain many problems which haven’t been solved thoroughly such as foreigners’ provision of tourism services under the name of Vietnamese people, or the imitation of travel brand names, deputy Tuyet said. 

She urged that travel business conditions be tightened to ensure that tourism activities are under control. 

Regulations on conditions for recognising a national tourism site also attracted attention from many deputies. 

Deputy Quoc suggested the draft specify that a national tourism site can be recognised regardless of its ownership in order to encourage the private sector to invest in developing tourist attractions. 

Deputy Tuyet did not support the stipulation that a tourism site must cover at least 1,000ha of land and welcome 500,000 visitors per year in order to be recognised a national site. 

Instead, a national tourism site should be one with rich cultural and natural values which need to be preserved and promoted sustainably, she said.

VNA