GDP of first quarter to be lower than target: MPI

Friday, Feb 26, 2021 08:45

With the current pandemic situation, the Ministry of Planning and Investment estimates an increase of 4.46 per cent for Q1's GDP. — VNA/VNS File Photo

If the COVID-19 pandemic is controlled in the first quarter, the GDP for the period may increase by 4.46 per cent, said the Ministry of Planning and Investment (MPI).

According to MPI, the first resolution of the 13th National Congress of the Party or Resolution 01/NQ-CP set the main tasks and solutions for the implementation of the socio-economic development plan and State budget estimate with growth scenarios for each quarter and sector in 2021.

As the resolution set a GDP growth of 5.12 per cent for the first quarter, the estimated growth rate for Q1 was 0.66 percentage points lower than the target.

The ministry said: “If the growth targets in the following quarters set in the resolution are reached, the decline will put the growth for the whole year 2021 at 6.37 per cent, reaching the target of 6 per cent set by the National Assembly and lower than the growth target of 6.5 per cent set in the resolution.”

Minister of Planning and Investment Nguyen Chi Dung said: “It is necessary to urgently and drastically implement the resolution’s target through striving to achieve the goals of the socio-economic development plan.”

In a report submitted to the Government last month, the MPI proposed solutions to promote economic growth through three core economic fields of investment, export and consumption.

Under the proposal, the financial and banking sectors would continue to implement a rational expansion of fiscal and monetary policies to stabilise the macro-economy, stimulate economic growth and save expenses.

At the same time, the sectors should spend resources on anti-pandemic activities and development investment, maintain a reasonable interest rate level, improve credit quality, focus credit on priority areas and strictly control areas with risks.

MPI also said the sectors have to carefully consider monetary and fiscal policies to develop supportive policies for those still impacted by COVID-19, especially the service and tourism industry.

The ministry said all ministries and sectors must monitor the domestic and international situation to timely grasp information, analyse, forecast and build scenarios and measures to respond effectively to fluctuations and arising problems.

On developing the domestic market and improving the business environment and ensuring labour resources, the MPI asked the Ministry of Industry and Trade (MoIT) to urgently research and implement policies to stimulate domestic consumption and enhance links between production and market along the supply chain.

The MoIT was asked to keep building brand names for Vietnamese goods and promoting the development of the distribution system associated with the campaign 'Vietnamese people give priority to using Vietnamese goods' to create sustainable outputs for manufacturing enterprises.

“The MoIT needs to improve institutions and create favourable conditions for the development of e-commerce and application of electronic payment, supporting export enterprises to expand output markets through cross-border e-commerce, promote the application of technology to promote chain management, and facilitate traceability,” said the MPI's report.

The report also proposed improving the quality of institutions, creating an open and favourable business and investment environment. The ministry also urged ministries and industries to implement the tasks and solutions set in Resolution 02/NQ-CP on improving the business environment and national competitiveness by 2021. In which it called for reviewing, amending and supplementing legal regulations, focusing on removing difficulties of businesses caused by mechanisms and policies.

The MPI asked all localities to prepare procedures for the approval of investment decisions, cost estimates, of large and important projects with spillover effects, especially traffic infrastructure and power projects to create favourable conditions for their implementation after the approval of the medium-term investment plan for 2021-2025.

On the management, disbursement and use of official development assistance capital, the MPI said: “It is necessary to renew and determine the priority order of projects associated with ensuring reciprocal capital sources and promote investment projects in the form of public-private partnerships to facilitate investment capital from the private sector, especially for transport infrastructure projects.”

The report told localities to focus on promoting international co-operation, diversifying import and export markets, maximising the advantages of free trade agreements (FTAs).

To fulfil the target of the first resolution, MPI said Viet Nam must harmonise commercial relations with major partners, disseminating information about trade deals, strengthen defence measures, build an early warning system on trade remedies to protect domestic production and help businesses respond to trade defense lawsuits. — VNS

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