Việt Nam must maintain macro-economic stability for sustained development, Prime Minister Nguyễn Xuân Phúc said at a legislature session in Hà Nội yesterday.
Phúc was discussing the country's tasks for the rest of this year, as he reported on the first half of this year's socio-economic situation that showed various problems the National Assembly (NA) must solve.
Other major tasks include economic restructuring, eliminating business barriers and encouraging start-ups, and strengthening administrative discipline.
The PM also urged efforts to cope with climate change and protect the environment, maintain national independence and sovereignty, and enhance the efficiency of global integration.
According to Phúc, macro-conditions were stable during the first half with credits growing by 8.2 per cent, social investments increasing 11.7 per cent, and disbursed foreign direct investment (FDI) rose by 15.1 per cent. Newly registered official development assistance (ODA) also expanded by 61 per cent during the period.
However, public debt was close to the national red line, reaching 62.2 per cent of the country's gross domestic product (GDP) at the end of 2015. Debt payment responsibility over 2011-15 nearly doubled that of the previous five years.
State budget overspending was high with an unreasonable spending structure. The ratio of spending for capital investments fell to 23.4 per cent during 2011-15, from 28 per cent in the previous five years; while regular spending increased from 55 per cent to 65 per cent due to growing expenditures for human resources and wages.
Obstacles remained for bad debt resolution. The Việt Nam Asset Management Company settled only 13 per cent of total non-performing loans worth VNĐ241 trillion (US$10.7 billion) that it had bought so far.
Economic growth slowed to 5.5 per cent in the first half of the year, compared to 6.3 per cent in the same period last year. Agricultural production value dropped by 0.18 per cent in the first half, the first decline in the last few years.
The index of industrial production grew by 7.5 per cent in up to July, compared to 9.7 per cent in the same period last year. Growth in foreign trade was also slowed to 5.9 per cent from 9.2 per cent.
Shortcomings also remained in market management, rural development, administrative reforms and law enforcement. National sovereignty witnessed big challenges, and natural disasters and environmental problems were also a concern.
In the face of global economic, social and political headwinds, Phúc said: "We must go on with comprehensive innovation, determination in leadership, and promotion of democracy and creativeness among businesses and people."
During yesterday's session, NA deputies raised the need to attach special importance to climate change and environmental issues.
Vietnam News
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