If development tasks are not implemented in a drastic manner in September and the fourth quarter of 2017, they might not be achieved, Prime Minister Nguyen Xuan Phuc said at the Government’s August regular meeting on August 30.

Prime Minister Nguyen Xuan Phuc ​speaks at the Government meeting on August 30

Cabinet members discussed solutions to fulfil socio-economic targets for this year and gave opinions on the implementation of the State budget plan for 2017 and estimates for 2018, the allocation of the central budget in 2018, and other hot issues emerging in August.

Concluding the meeting, PM Phuc applauded tireless efforts by ministries, sectors, localities, organisations, individuals and businesses in carrying out 13 socio-economic targets set for this year, with eight of them expected to surpass the plans.

The Cabinet chief ordered them not to be subjective while continuing to review each target and exert all-out efforts to realise the targets.

He requested the Ministry of Finance to review budget collection and expenditure targets to ensure national financial security and major financial balances. He urged actions to prevent tax fraud, debt and over-collection and to promote tax revenues.

It is also necessary to strongly reform the budget, increase expenditure on development investment and debt repayment, and sharply decrease frequent spending, the Government leader said.

To facilitate the capital flow for production and business activities, the PM asked the State Bank of Vietnam to cut down lending interest rates by another 0.5 percent since this is an important solution to stimulate the economy. It has to take necessary measures to support businesses while ensuring a credit growth rate of at least 21 percent and strictly dealing with credit-related violations.

Regarding the acceleration of investment and ODA capital disbursement for infrastructure construction, he instructed the Ministry of Planning and Investment to promptly allocate capital under the Government’s resolution while inspecting units which directly use public investment capital.

In the short term, the increase of taxes, fees and charges needs to be postponed to avoid impacts on enterprises and the business environment, he noted.

At the meeting, PM Phuc asked the agricultural sector to attain the planned growth rate of 3.05 percent and farm produce export turnover of 35 billion USD, which will set a new record. He also ordered examination of big industrial provinces to remove difficulties and accelerate industrial projects.

If the industrial, agricultural and services sectors fail to realise their targets for only one month, it will be hard to achieve the targeted growth rate of 6.7 percent for 2017, the PM said, stressing that the tourism industry must strive to serve 15-17 million tourists this year.

Minister optimistic about achieving economic growth target

Minister and Chairman of the Government Office Mai Tien Dung 

Minister and Chairman of the Government Office Mai Tien Dung said the economic performance in the January-August period is very positive, raising hope about achieving the target of 6.7 percent economic growth this year. 

During a press conference following the monthly Government’s meeting in Hanoi on August 30, Dung said the government and the Prime Minister have drastically directed ministries and agencies concerned to remove difficulties for enterprises. The Government held a specialized meeting on law building, with cutting unnecessary business procedures high on the agenda.

The ministries of finance and transport were assigned to review legal regulations on BOT tolls and cut specialised inspection fees for exports-imports. Currently 35 percent of exports and imports are subject to such inspection, he said, adding that the government has required cutting the rate to 15 percent. 

Dung added that ministries, agencies and localities should study proposals raised by the Ministry of Planning and Investment (MoPI) and the Vietnam Chamber of Commerce and Industry on cutting and amending nearly 2,000 business conditions.

In order to achieve a 6.7 percent growth, Dung said the agricultural sector should expand by 3.05 percent. He noted that agro-forestry-fisheries exporters could bring home 35 billion USD compared to the planned 33 billion USD thanks to favourable weather conditions. 

In industry, electricity production and manufacturing and processing have been performing well. Moreover, disbursement for projects has been sped up while interest rates dropped by 0.5 percent and credit growth hit 21-22 percent. 

According to the MoPI, as of August 21, credit increased by 10.06 percent from December 2016. Inter-bank interest rates are on a declining trend, the foreign exchange market has stabilised and liquidity has improved.

VNA