Viet Nam Development Forum launched

PM Nguyen Xuan Phuc (center) at Viet Nam Development Forum (VDF 2016), Ha Noi, December 9, 2016 - Photo: VGP/Quang Hieu

The event was jointly hosted by the Ministry of Planning and Investment and the World Bank (WB).

Growth prospects await but high risks remain

Adressing the event, PM Nguyen Xuan Phuc hailed constructive and responsible comments on Viet Nam’s economy.

The PM highlighted his determination to build a facilitating and action oriented Government in favor of both citizens and businesses.

The Government has spared no effort to perfect the legal system, administrative procedures, the investment and business environment, competitiveness; and courage business start-up.

In addition, the Government has also focused on handling social pressing issues; maintaining social order; ensuring legitimate rights of people and enterprises; managing food hygiene; and protecting the environment.

The Government chief admitted shortcomings and weaknesses in the economy while asserting the determination towards fast and sustainable growth. “No one will be left behind as an average growth pace of GDP per capita will be at 6.5-7% in the 2016-2020 period,” he said.

The PM agreed that in the next couple of years, economic prospects implicit unexpected risks such as oil prices, trade promotion trend (due to possible TPP hindrances). These factors may cause heavy influences on production, FDI attraction, and exports.

Moreover, natural disasters, climate change, saltwater intrusion, and droughts may cause negative impacts on the agricultural sector. Settlement of non-performing loans faced  numerous difficulties. Public debts and debt payment pressure surged while the Government needs more resources to pursue the restructuring process and generate more driving forces for growth, said the PM.

Eight key orientations

PM Phuc reiterated his determination to build an effective administrative system, a facilitating and action oriented Government, regarding this as his top priority in the 2016-2020 tenure.

On that spirit, the Government will pursue the eight key orientations as follow:

Firstly, perfecting the institutions, and legal system; facilitating production and business; strengthening the State administrative apparatus; reforming administrative procedures; preventing corruption and wastefulness;  

Secondly, improving the business and investment environment; raising competitiveness by amending, supplementing and accomplishing mechanisms and policies on planning, investment; encouraging innovations, business start-up, and private economy; striving for better business environment in equivalent with the minimum average level of the ASEAN-4 group.

Thirdly, restructuring the economy in a practical manner in line with transformation of the growth modal; raising productivity, quality, efficiency, and competitiveness;  

Fourthly, accelerating SOEs equitization process, withdrawal of State capital from non-core businesses in accordance with market mechanisms;

Fifthly, controlling public debts, debt payment in an effective manner;

Sixthly, improving the legal system on the Viet Nam Asset Management Company; developing debt trading market; and handling NPLs.

Seventhly, ensuring social welfare; protecting the environment; and responding to climate change;  

Eighthly, positively integrating into the world economy; and implementing the 12 signed FTAs./.

By Kim Loan