Vietnam has fulfilled targets set for 2014 despite challenges due to the slow recovery of the global economy, spreading conflicts in several countries, and tensions in the East Sea and East China Sea. Under the leadership of the Communist Party of Vietnam, the Vietnamese government resolutely and attentively carried out this year’s tasks according to the National Assembly’s resolution. The government has held monthly meetings to review the implementation of socio-economic tasks.

Positive changes in the macro economy, business investment, and economic restructuring

The Prime Minister said that because the situation in Vietnam and the world remains complicated, the government has closely followed and promptly adjusted solutions set out in the National Assembly’s resolution to implement socio-economic tasks. As a result, the socio-economic situation in the first 9 months of this year improved, inflation was controlled, and the macro-economy was stabilized: “Despite numerous challenges, Vietnam has gained positive achievements. Vietnam managed to achieve the socio-economic targets set out by the National Assembly. Thanks to the efforts made by the Party and the public, inflation has been controlled and the macro-economy has become more stable. The rise of the Consumer Price Index has slowed, rising only 2.25% in 9 months, the slowest in the last 10 years, and the increase is expected to be less than 5% this year. The interest rate is 2% lower than last year. Year-to-date, credit growth was 7.26% and is expected to be between 12 and 14% this year. Vietnam’s foreign currency reserves have increased to a record level. Trade and payment balances are on the plus side”.

The Prime Minister said the rates of public debt, government debt and foreign debt are within the allowed limit. But, the Prime Minister said the public debt has increased recently.

The Prime Minister said that the business environment and the productivity, efficiency and competitive edge of the economy remain low while the demands of international integration are high. Dung said the demands of socio-economic development and national defence are increasing, but resources are limited.

The Prime Minister pointed out limitations and weaknesses of the economy including the instability of the macro-economy and the economic balance, high budget overspending, slow increase of demand and credit and high rate of bad debts. According to the Prime Minister, the mobilization of resources for development has not been sufficient, the securities market is unstable and the real estate market is recovering slowly. The domestic enterprises share of total export value remains low.

Targeting higher, more sustainable economic growth in 2015

Prime Minister Nguyen Tan Dung said Vietnam targets a GDP growth rate of 6.2% and CPI of 5% next year. Import surplus is expected to be 5%. To this end, the Prime Minister said, Vietnam will strengthen macro-economic stabilization: “Vietnam will continue a flexible monetary policy in coordination with an effective fiscal policy and effectively controlling inflation. We will adjust interest rates according to inflation developments, stabilize the exchange rates, and the foreign currency market, increase foreign reserves, and ensure the value of the Vietnamese dong. Vietnam plans to promote the securities market, practice thrift in using the state budget, and not to increase regular spending. We will also tighten, and use effectively public, government and foreign debts of Vietnam and ensure that they are within safe limits. The government plans to increase the effectiveness of trade promotion, take advantage of international commitments and existing markets and mobilize more resources for development investment”.

The government will strengthen economic restructuring in combination with shifting the growth model. Prime Minister Dung said that more efforts will be made to accelerate the Project on restructuring the overall economy and each individual sector: “We will accelerate the restructuring of state-owned enterprises and carry out plans to equitize SOEs and withdraw investment capital from non-core sectors. We will continue to restructure credit organizations, improve financial and management capability and quality of credits, accelerate the settlement of bad debts, and promote the M&A market. We will develop appropriate mechanisms to improve the performance of the Vietnam Asset Management Company to reduce the rate of bad debts to 3% by 2015. We will mobilize more resources for agricultural restructuring in association with new rural development. We will focus on restructuring production and increase the application of science and technology”.

The Government will continue to fine-tune mechanisms and policies, fully implement regulations of the market economy, especially in terms of price management, resource allocation, competitiveness, transparency, and effective operation of markets. Prime Minister Nguyen Tan Dung said Vietnam is making every effort to achieve this year’s targets and the Party, the army and the public need to join efforts to achieve next year’s targets.