Prime Minister Nguyen Xuan Phuc has urged the Ministry of Planning and Investment (MPI) and other ministries and agencies to promptly reach consensus on solutions to the lingering problems facing the country in order to fulfill the growth target of 6.7 percent in 2016 approved by the National Assembly, with special attention paid to inflation and the interest rate.

PM Nguyen Xuan Phuc at the working session

The leader made the request at a working session with the MPI in Hanoi on April 21 to seek specific solutions to stabilise the macro-economy, maintain the economic growth, curb inflation and fulfill socio-economic tasks set in the year.

He commented on economic difficulties, severe drought and saltwater intrusion in the Central Highlands and Mekong Delta regions and hailstones in northern mountainous provinces that cost 0.3 percent of the national GDP.

The situation has been worsened due to a sharp fall in oil prices and obstacles hindering the operation of businesses as well as budget collection and spending, the PM added.

Given this, he underlined the need for the ministry to roll out solutions to spur national economic growth in the second quarter, and for the whole year of 2016, to strengthen its forecast capacity and perform its role as an advisor to the Government better – in both the short and long terms.

The MPI should keep a close watch on the rules of a market economy to advise the Government on issuing socio-economic development policies, he said, suggesting the establishment of a hotline on economic matters.

The ministry must take the lead in the fight against corruption, the leader stressed, asking it to partner with relevant ministries and agencies, particularly the Ministry of Finance to propose growth models and build special economic zones.

The immediate job is to coordinate with the Vietnam Chamber of Commerce and Industry to organise a conference between the PM and businesses scheduled for the end of this month in Ho Chi Minh City, he noted.

Delegates at the working session suggested that prompt actions should be given to removing difficulties facing businesses, especially the private sector and reducing the interest rate cap.

Many proposed the Government increase its direct dialogues with the business community to help them overcome such challenges.

Others called on ministries and agencies to continue implementing the Government’s sweeping measures and the PM’s guidelines while practising thrift and fighting wastefulness.

Other tasks include restructuring public investments and enterprises, improving the efficiency of State-owned enterprises and easing the dependence on ODA loans, they said.

The working session heard that the ODA will be re-lent instead of being allocated. The MPI also suggested establishing a regional development agency in charge of coordinating the development between regions in service of the national economy.

PM asks for measures to control state revenue loss

Newly-elected Prime Minister Nguyen Xuan Phuc had a working session with the Ministry of Finance (MoF) on April 21, focusing on measures to tackle state revenue loss and state budget woes.

He ordered the MoF to build specific and effective solutions to revenue loss, which were mostly caused by commercial fraud and tax-related violations.

Regulations asking all commercial shops, especially in big cities like Hanoi and Ho Chi Minh City, to have invoices, and making clear the customs duty charges were measures suggested by the Government leader to solve the problem which has been exacerbated by the recent cheap price of export oil.

The MoF was also requested to speed up the equitisation of State-owned enterprises, yet had to be careful to avoid asset losses and the appearance of interest groups.

The ministry – in charge of managing the State assets worth about 3.9 quadrillion VND (174.9 billion USD) and other financial funds – has to tighten its grip and report frequently to the Government over the use of State assets and its operations of those funds, he said.

According to economists, Vietnam’s gross domestic product (GDP) growth reached only 5.46 percent in the first quarter of 2016, down from that of the same period last year.

If no drastic measures are taken, the country will be difficult to reach the set yearly target of 6.7 percent.

The PM affirmed that the Government will not adjust the GDP growth rate for 2016.

Therefore, the MoF needs to double efforts to boost production and business, with the focus on administrative procedure reform, especially in taxation and customs, to attract more investment.

The ministry was also urged to work with the State Bank of Vietnam and the Ministry of Planning and Investment on measures to curb inflation, stabilise the macro economy, and perfect the institution to achieve sustainable growth.

VNA