Gov’t tosses and turns about growth impetus

Overview of the working session. Photo: VGP

The session was also attended by leaders of the Ministry of Planning and Investment, Ministry of Industry and Trade, Ministry of Finance, State Bank of Viet Nam, Government Office, and Committee for State Capital Management invested at enterprises.

According to team leader Vu Viet Ngoan, economic growth over the past time was mainly fueled by the Government’s comprehensive reform efforts featuring with drastic and clear directions and solutions and strict supervision.

A number of specific policies detailing the orientation of considering private economy as a major impetus of the economy have started to produce initial outcomes, Ngoan said.

He added macroeconomic policies have been regulated flexibly and closely coordinated. Pundits, however, said the current growth impetus would not be sustainable in the years to come.

Creating new impetus and accelerating productivity should be regarded as a political mandate, according to a report presented by the team.

The team suggested the Government should set the average growth rate of 6.85% for 2018-2020 after rolling out its three growth scenarios of the Vietnamese economy.

Dr. Vu Viet Ngoan (standing), Head of the PM's Economic Advisory Group speaks at the working session. Photo: VGP

Members of the team also suggested PM Phuc assign the Ministry of Industry and Trade and the State Bank of Viet Nam to devise plans to cope with protectionism that tends to rise in recent times.

Next economic policies should be designed with a focus on supporting businesses to reduce costs and improve competitiveness, according to the team.

They also  pointed out a number of other issues that the Government needs to address, including determination of inferior levels, workforce quality, and cooperation between foreign and domestic sectors.

Concluding the session, PM Phuc welcomed the team’s recommendations which will help the Government to shape its future policies.

The Government chief said he is not satisfied with the current status of the economy as shortcomings still remain.

He said the Government will continue special attention to improve business environment, organize domestic production, seek new export markets, and guide the economy to green and quality growth.

On the occasion, the Government chief and the team members also discussed on draft law on property tax proposed by the Ministry of Finance.

The 14-member Economic Advisory Group, which was established by PM Phuc in July last year, is responsible for advising the PM on mid-term and long-term economic development strategies, plans, projects and policies.

The team will evaluate the implementation of the aforesaid documents in order to suggest revisions to mechanisms and policies.

It will also suggest measures to timely cope with domestic and international economic developments and offer independent comments on the PM’s major economic projects before submitting to the Politburo, National Assembly.

The team is allowed to cooperate with local and foreign experts and contributors and invited to attend related meetings of the Government and the PM.

The decision to form the Economic Advisory Group reflects the Government’s determination to work towards professional governance./.

By Quang Minh