People shop at a night market in Hang Dao Street, Hoan Kiem District in Ha Noi. Viet Nam gained decade-high GDP growth of 7.38 per cent in the first quarter of this year. — VNA/VNS Photo Vu Sinh
The decade-high GDP growth of 7.38 per cent achieved in the first quarter may not be easy to replicate for the rest of the year. The government, however, will strive towards a year-on-year growth rate of 6.7 per cent.
Prime Minister Nguyen Xuan Phuc said this during the monthly government meeting on Monday in Ha Noi. He asked the Cabinet to “contribute constructively” to the 2018 economic growth scenario to achieve this target, which is higher than the 6.5 per cent growth rate set by the National Assembly last year.
The morning session was also amongst the rare ones, with socio-economic affairs, especially the development of growth scenarios, were discussed first instead of the usual law issues.
In his opening speech, Phuc also lauded the growth of several sectors in the first quarter. For example, agriculture and fisheries grew by 4.05 per cent, while construction and industry expanded by 9.77 per cent, nearly double the figures achieved last year.
During the period, total retail and consumption services increased by 9.9 per cent year-on-year. Foreign tourist arrivals in Viet Nam were estimated at 4.2 million, up 30.9 per cent annually.
Total exports surged 22 per cent to US$54.3 billion while social investment soared by 10.4 per cent.
PM Phuc pointed to Nikkei’s report on Monday, evaluating Viet Nam’s Purchasing Managers’ Index (PMI) at 51.6 in March. Viet Nam is one of the two countries in Southeast Asia boasting a reading of over 50, albeit a slight drop compared to PMI 53.5 in February.
He also expressed satisfaction with local governments for their efforts in improving business conditions, with the Provincial Competitiveness Index hitting the highest average score since 2005, marking a “widespread enthusiasm in investment and business climate across all localities”.
Phuc said just in the first few months of 2018, Viet Nam officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP-11), successfully held the sixth Greater Mekong Sub-region Summit as well as the Cambodia-Laos-Viet Nam (CLV) Development Triangle Area meeting on Saturday, where Viet Nam’s ideas and agenda were highly appreciated by the participating countries, showcasing the country’s international integration efforts and its elevated position in the world.
However, the Prime Minister also drew attention to the weaknesses of the economy, including the fact that newly established enterprises grew by a mere 1.2 per cent in the first quarter of the year compared to the same period last year, accompanied by a number of struggling enterprises and bankrupt or dissolved enterprises.
According to a report of the Ministry of Planning and Investment, by the end of March 2018, the Government’s total revenue reached over VND308 trillion (US$13.49 billion), up 5.3 per cent compared to the first quarter last year, but barely one fourth of the planned revenue.
Pressing issues
In the afternoon, the Government Cabinet discussed the country’s 2018 growth plan and other pressing societal issues.
Prime Minister Nguyen Xuan Phuc said the Asian Development Bank (ADB) and some international financial institutions forecasted that Viet Nam’s economic growth would be around 6.7 per cent in 2018, the same prediction as the Government’s.
Regarding this matter, the Ministry of Planning and Investment submitted two scenarios to the Government. In the first, the GDP growth rate would reach 6.7 percent. In the second one, GDP growth would reach 6.8 per cent.
The Government assigned the Ministry of Planning and Investment to review the growth plan of each sector in the country to make sure 6.7 per cent is the minimum growth rate achieved.
The Prime Minister urged institutional reforms to be stepped up, outstanding lawmaking problems to be solved, and administrative procedure reforms to continue, thus creating more favourable conditions for investors, businesses and people. He lauded the efforts made by some commercial banks to reduce loan rates. He asked relevant ministries to continue focusing on real estate and security monitoring.
Notably, the Ministry of Culture, Sports and Tourism was told to enhance tourism promotion activities, especially before the peak season summer, in order to gain a tourism growth rate of 30 percent in 2018.
Regarding the expansion of Tan Son Nhat International Airport , Phuc emphasised the need to respect the opinions of the independent consultancy, the Transport Ministry and the HCM City People’s Committee.
The airport will be expanded to both the north and the south to optimise its operations. If necessary, the adjacent golf course will be used to serve the airport’s activities, he added. — VNS