"High overspending, rising public debt", PM

Monday, 2014-10-20 21:27:29
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PM Nguyen Tan Dung speaks at the opening session of the 13th NA
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NDO - The macro-economy and major economic indicators lack stability, the budget deficit remains high, and public debt is increasing rapidly, said Prime Minister Nguyen Tan Dung at the opening session of the 13th National Assembly in Hanoi on October 20.

According to the Government’s report on the implementation of the socio-economic development targets for 2014 and plans for 2015, the ratio between Government debt payment and the country's total budget revenue in 2014 is 14.2% which is still under the allowable limits prescribed by the Public Debt Strategy of 25%.

The Government leader reported that the total demand and credit growth in first months of 2014 have seen slow increases in addition to high non-performing loans and sluggish settlement of non-performing loans.

The business and investment environment along with competitiveness have undergone slow improvements in addition to hindrances in administrative procedures, he noted.

The report also pointed out slow-moving economic restructuring; low productivity, quality and competitiveness of the national economy; and slow development of high-tech and supporting industries.

According to the PM, Vietnam is expected to meet 13 out of 14 targets set for 2014, only missing the target for workers undergoing training which reached 49% compared to the goal of 52%.

The following are the 13 targets expected to be reach: GDP growth rate; export revenue growth rate; trade deficit rate; consumer price index; poverty reduction rate; unemployment rate in urban areas; job creation; rate of trained workers; percentage of under five years old children with malnutrition; the number of hospital beds per 10,000 people; the settlement of firms causing serious pollution; percentage of industrial and processing zones having wastewater treatment systems up to standards; and the percentage of forest cover.

The Government defines the general goals for 2015 as stabilising the macro-economy, restructuring the economy in line with the transformation of the economic growth model, and improving productivity, effectiveness and competitiveness of the economy among others.

The Government also forecast a GDP growth rate of 6.2% in 2015, CPI of 5%, a poverty reduction rate of 1.7-2%, and the creation of about 1.6 million new jobs.