Prime Minister Nguyen Xuan Phuc said the Government reported to the National Assembly that the growth rate in Q4 must be between 7.1 and 7.3% so as to reach an expansion of 6.3-6.5% for the whole of 2016.
A failure to reach the growth target, revised from the original target of 6.7%, would also affect the public debt, he said, asking Cabinet members to hold in-depth discussions to devise appropriate solutions.
He noted that the consumer price index (CPI) in October increased by 0.83% from the previous month, meaning the ten-month CPI was already 4% compared with December 2015. Meanwhile, the National Assembly set the maximum target index for this year at 5%.
Ministries and local administrations must act to control inflation within the set target, to ensure macroeconomic stability and to fuel growth, PM Phuc said.
Vietnam recently climbed to the 82nd position among 190 economies in the World Bank’s Doing Business 2017 report, up nine notches from 91st place last year. PM Phuc said that this was an encouraging demonstration of the country’s progress.
Though many sub-indexes have increased significantly, some others have declined since the previous report, including those dealing with construction permits, getting credit, starting a business and registering property.
The PM requested that ministries and sectors find out the causes of these problems and work out countermeasures.
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PM Nguyen Xuan Phuc speaks during the opening of the cabinet meeting in Hanoi on October 29. (Credit: VGP)
He highlighted the rising number of new businesses—at 92,000 at present, a number likely to surpass 100,000 this year. More than 20,000 companies resuming operations since the beginning of 2016 also illustrate their confidence in the market and the steering of the Government.
However, ministries and local administrations had to make preparations right from this year so that economic growth in Q1 of 2017 would not slow down as it had for many years, PM Phuc added.
He stressed Vietnam aimed to have an investment climate comparable to those of the four other ASEAN countries of Singapore, Malaysia, Thailand and the Philippines in 2017. To that end, all relevant shortcomings must be addressed immediately.
In October, the Government successfully organised the biggest diplomatic events of the year: the eighth Cooperation Summit of Cambodia, Laos, Myanmar and Vietnam (CLMV 8); the seventh Ayeyawady–Chao Phraya–Mekong Economic Cooperation Strategy (ACMECS) Summit; and the World Economic Forum on the Mekong Region.
Through these, Vietnam have demonstrated its role and standing in the region and the world, leaving a good impression on the participants, the Cabinet chief said, considering them as good experience for the country to prepare for the Asia-Pacific Economic Cooperation (APEC) Summit next year.
At the morning session of the Government’s meeting, officials discussed institution-building. They are set to look into the socioeconomic situation with reports on economic growth and inflation control later.
