PM rejects under US$ 3 billion trade deficit goal for 2019

PM Nguyen Xuan Phuc (center) at the summary conference of the MoIT, Ha Noi, January 17, 2019 - Photo: VGP/Quang Hieu

In 2018, some preset norms were fulfilled even surpassed. Viet Nam’s industry and trade made up 80% of GDP, accounting for 0.29% of global GDP (Viet Nam used to account only 0.18% in previous years). 

In 2018, total export turnover hit over US$ 482 billion; trade surplus was US$ 7.2 billion, three times higher than that of 2017. Viet Nam had 29 exports in the over US$ 1 billion export turnover club. For the first time, agro-export turnover reached over US$ 40 billion. 

The PM also praised the MoIT for streamlining a large number of business conditions. 

However, the Government chief also frankly pointed out shortcomings including the slow adjustments of strategies and planning; the lack of modern technology and spearhead industries; weak connectivity among enterprises, domestic and foreign ones; inappropriate technological transfer; and slow engagement into the global value chains. Especially, the problem of counterfeit, poor-quality products, trade frauds occurred complicatedly. 

Regarding the tasks and preset goals for 2019, PM Phuc disagreed with the MoIT’s goal of US$ 3 billion trade deficit following the record trade surplus in 2018. The Government chief stressed that total retail sales of goods and services should increase by 12-13%. 

PM Phuc tasked the ministry to accelerate the progress of privatization, capital withdrawal, and SOEs restructuring in a more practical and effective manner. 

The MoIT was urged to keep a close watch on domestic and international markets for more flexible and timely actions. 

The Government chief also stressed the importance of combating corruption and wastefulness and administrative disciplines./.

By Kim Anh