The Government is meeting for two days to discuss the socioeconomic situation and institutional reform.
Vietnam’s economy has improved in the first nine months of the year, as demonstrated by the significant amounts of foreign investment and remittances going into manufacturing, an increasing trade surplus and growth in the number of new enterprises and capital.
Agriculture returned to positive growth at 0.65% in the July–September period after contracting by 0.18% in the first half of the year.
Manufacturing also saw positive developments when the purchasing managers’ index in September hit a sixteen-month high of 52.9, indicating growth in the sector.
Gross domestic product, however, grew by only 5.92% in the first three quarters of 2016, and an annual 6.5% expansion rate requires that growth in the final three months reach 7.3%.
The prime minister said that such a target was difficult but not impossible to attain because in previous years growth had always quickened in the fourth quarter.
Estimates by international organisations suggest that Vietnam’s economy may only grow by 6% this year as a result of the mass fish deaths on the central coast, drought and saltwater intrusion.
According to Prime Minister Phuc, eleven socioeconomic goals for 2016 set by the National Assembly have been attained, while two have yet to be fulfilled, one of which concerns gross domestic product.
As such, the prime minister emphasised that strong determination and tangible actions were needed by the both the Government and the business community.
He gave the example that if aggressive action was not taken to provide sufficient electrical power, one of the major factors in keeping the economy going, the momentum for growth would will be lost.
The prime minister requested that during the two-day meeting, cabinet members review the downsides of existing policies and address them to support production and business activities.
