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PM confident over 2014 GDP growth

Released at: 12:39, 03/12/2014

PM confident over 2014 GDP growth

PM Dung touches on a range of matters during an address to the Vietnam Business Forum.

by Minh Tien

Prime Minister Nguyen Tan Dung told the Vietnam Business Forum (VBF) on December 2 that he confident GDP growth for 2014 would reach 5.9 per cent and he committed to the target of 6.2 per cent for 2015 while keeping inflation under 5 per cent.

In his third direct meeting with the business community this year the PM confirmed that the economy has experienced a very challenging year, especially with China placing an oil rig in its territorial waters in the East Sea. Nevertheless, by their own efforts and with support from foreign investors, authorities managed to stabilize the macroeconomic environment and keep inflation under control.

The estimated economic growth of 5.9 per cent is actually higher than the initial target set for the year. The PM, however, still recognized that the result may not meet the expectations of the business community and pledged to improve the business environment in 2015.

Restructuring public investments, State-owned enterprises (SOEs) and the banking and finance system are areas where the Prime Minster asked for breakthroughs in the new year. “Public debt should be secured and kept under the ceiling of 65 per cent while repayments should be sufficient and on schedule,” he said.

Regarding the reform of SOEs, Prime Minister Dung asserted that 432 enterprises would be reformed next year and the State will quickly reduce its capital in fields where it need not be involved. “Along with SOE equitization, the government is also committed to developing a strong private sector while attracting more foreign investors to Vietnam,” he said.

Vietnam will also actively reform and develop the capital market, the labor market, the real estate market, and other markets help businesses grow, improve their labor productivity and international competitiveness, and consequently integrate into the global economy through various free trade agreements.

He was also confident that cutting non-performing loans to below 3 per cent in 2015 was entirely feasible and Vietnam’s credit institution would return to a normal state.

Additionally, a key task of the government in the years to come is to prevent and combat corruption. “Improving the institutions of a market economy, implementing transparency in asset management, budget management and business will contribute more effectively to the fight against corruption,” he said.

He told the gathering that the government would listen carefully to their opinions as well as their proposed solutions to the fight against corruption while remaining focused on reforming administrative procedures and penalizing any violations. “The government is determined to fight against corruption, and the issue is to find effective solutions,” he said.

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