PM says economy performs positively in first five months

VGP - PM Nguyen Xuan Phuc said the economy performed positively in the first five months this year but the Government's goal to cut administrative procedures and business conditions by half has not been fully implemented while addressing the Cabinet meeting on Saturday.

June 02, 2018 5:57 PM GMT+7

>>> Infographics: Socio-economic performance in first 5 months

PM Nguyen Xuan Phuc addresses the Cabinet meeting in Ha Noi on June 2, 2018. Photo: VGP

International organizations highly valued Viet Nam’s economic outlook, including improved ratings of Vietnamese commercial banks, he said.

Especially, Viet Nam’s purchasing managers’ index rose to a record high of 53.9 in May from from 52.7 in the previous month, the highest in ASEAN meanwhile industrial production index increased by 9.7% from the same period last year.

The total retail sales of goods and services climbed by 10.1% in the first months and foreign arrivals reached over 6.71 millions, up 27.6%, according to PM Phuc.

Other positive signals included export revenues of more than US$93 billion and disbursed volume of FDI of US$6.75 billion.

The Government chief, however, said there remain a number of shortcomings and challenges, thus, he required ministers to talk directly about these matters at the meeting.

One of the challenges is that the consumer price index increased by 0.55% against the previous month, putting pressure on the Government to keep the index under 4% as set by the National Assembly.

PM Phuc asked the Ministers of Finance and Industry and Trade not to increase prices of electricity this year and called for proper fiscal policy to reduce inflation pressure.

The Government chief frankly points out that the Government’s goal to cut 50% of administrative procedures and business conditions has not been fully implemented. Photo: VGP

He also pointed out the fact that disbursement rate of public investment capital still remains slow across ministries, sectors and localities, especially in Ha Noi (30%) and Ho Chi Minh City (15%).

“We need to deliberate on the matter, there must be stronger solutions,” stressed PM Phuc.

He called on inferior levels to further accelerate foreign investment attraction in a bid to spur growth.

The Government will organize a national-level meeting to review 30-year foreign investment attraction during which future orientations for selection of FDI will be brought to discussion, PM Phuc added.

Regarding administrative reform, PM Phuc said the Government’s goal to cut 50% of administrative procedures and business conditions has not been fully implemented./.

By Thuy Dung