The government report said inflation has been controlled, and the macro-economy has been stabilized. The rise of the Consumer Price Index has slowed, rising only 2.25% in 9 months, the slowest rise in the last 10 years, and the increase is expected to be less than 5% this year. Year-to-date, credit growth was 7.26% and is expected to be between 12 and 14% this year. Foreign exchange rates and the foreign currency market remain stable and the foreign currency reserve has increased to the highest level ever. 13 of 14 socio-economic development targets were achieved.

The economy has recovered but many big problems remain

Earlier this year the economy saw some positive signs. Cao Sy Kiem, a National Assembly deputy from Thai Binh province, said a growth trend is visible in the economy, society, production, consumption, and exports. Inflation and purchasing power have been managed for long-term results.

Analyzing 2014 in the 5-year plan, the socio-economic situation reveals several problems. The results of curbing inflation, stabilizing the macro-economy, achieving reasonable growth, and reforming the economy have not totally met expectations. Many deputies say this year’s inflation can be kept below 4.5% but that result will be due not just to management policies but to low demand and slow growth. 

Generating specific conditions for enterprises to boost production

National Assembly said the high number of 70,000 enterprises closing or suspending production and 51,000 new enterprises being established over the last 9 months reflect difficulties in production and trade. Do Ngoc Nien, a deputy from Binh Thuan province, said that in addition to policies to reduce taxes and interest rates, new policies are needed to help enterprises expand their markets and apply new technology. Nguyen Thi Nguyet Huong, a deputy from Ha Noi, said that when GDP reaches 6.2% next year, the government should create a stimulus program for enterprises. Vu Xuan Hong, a deputy from Phu Tho, said: “Many enterprises have resumed production but many cannot recover. We need to help them through tax, capital access, and technology policies. Localities should have their own incentives for land lease. The ASEAN community will be formed next year. Vietnam is pushing ahead the TPP negotiation and a Free Trade Agreement with the EU. We should offer the best conditions for our enterprises to thrive these markets.”

Economic restructure requires to deliver specific results

Many deputies said that although Vietnam has master plans for its economic restructure, the results are unclear.

Discussing bad debts in reforming the banking system and credit organizations, Pham Huy Hung, a deputy from Hanoi, said it’s time to review the operations mechanism of the Vietnam Asset Management Company. A comprehensive answer requires an audit of the banking system. Tran Du Lich, a deputy from Ho Chi Minh city, ruled out the use of the state budget in handling bad debts. “Bad debt is a normal issue of a credit organization but when it is a problem of the macro economy, it has surpassed the handling ability of a credit organization. The government has many resources to resolve bad debts such as borrowing capital from the fund for equitization and centralized funds. Why should we use the state budget to resolve bad debts when the state budget is running deficit. I recommend that the National Assembly allow the government to use funds under its management, excluding the state budget, to resolve bad debts.”

Vietnam targets a GDP growth rate of 6.2% and a CPI of 5% next year. Import surplus is expected to be 5%. In order to achieve these goals, more specific economic stimulus policies are needed.