(VOVworld)- With its socio-economic achievements in the first 8 months of this year, the Vietnamese government believes that it will achieve and even surpass 12 out of this year’s 14 socio-economic development targets by September. This will be a firm foundation for Vietnam to achieve all the targets set for this year and favourable conditions to further develop in 2015.
Vietnam’s socio-economic situation has developed steadily over the past 8 months thanks to great efforts made by the political system, enterprises and the public.
Major targets have been achieved and surpassed
Vietnam is expected to achieve a GDP growth rate of 5.8% and a CPI of 5% this year. This forecast is based on Vietnam’s steady economic recovery with high growth being reported in some sectors. Inflation has been gotten under control and the CPI has increased slowly. Prices of commodities remain stable. By the end of August, the GDP has increased 5.54%. With these indexes, Vietnam is expected to achieve the set GDP growth rate target of 5.8% this year.
The processing and manufacturing industries have recovered, with faster growth than last year, up 6.3% over the same period last year. Vietnam earned nearly 5 billion USD from seafood exports so far this year, 25% more than in 2013. The service sector has recovered.
The Vietnamese government’s ability to control the macro-economy reflects monetary stability. Foreign reserves have increased. Export value has totalled 1.7 billion USD. Domestic enterprises have added to exports an increase of 11%. Imports of machinery and production materials have increased slightly while imports of consumer goods have decreased.
The disbursement of FDI, ODA, and preferential capital has been efficient. The disbursement of ODA capital was 41% or 3 billion USD, much higher than the same period last year. This is the highest rate of disbursement ever.
By the end of August, more than 10,000 enterprises had resumed operation after a period of suspension.
Close, flexible coordination in managing macro-economic policy
Though Vietnam’s macro-economy has been gotten under control, it remains unstable. Credit growth remains low and demand has not improved. In the remaining months of the year, the Vietnamese government intends to help enterprises increase demand and credit growth. Nguyen Thi Hong, Deputy Governor of the State Bank of Vietnam said the bank will continue to help settle bad debts. She said the Bank has instructed the Company for Asset Management of Vietnamese Credit Organizations to buy about 5 billion USD worth of bad debts from credit organizations this year:“In the meantime, the State Bank of Vietnam will continue to help Credit Organizations strengthen and utilize risk management funds to deal with bad debts and coordinate with relevant Ministries and agencies to review obstacles in implementing Decree 53 on dealing with bad debts. We aim to accelerate the settlement of bad debts”.
Vietnam has been making an effort to restructure the economy, public investment, enterprises and the banking system to achieve the target growth. In addition, Vietnam is accelerating the reform of administrative procedures to boost production and investment and improve the business environment and the nation’s competitive edge. The Vietnamese government is reviewing and reprogramming ineffective plans. Prime Minister Nguyen Tan Dung said:“Every society needs to be governed by laws, strategies and plans. There are many ineffective, costly and cumbersome plans. So the Ministry of Planning and Investment needs to work with the government to work out feasible plans”.
With efforts by the political system, enterprises and the public, Vietnam is steadily fulfilling the socio-economic development targets set for 2014. This will create momentum for further growth in 2015.