Prime Minister Nguyen Tan Dung presents report on socioeconomic indicators to National Assembly meeting.
The Prime Minister’s report on the socioeconomic situation in 2015 and last five years presented to the 10th session of National Assembly (NA) XIII noted that despite many positive changes the economy still has a number of limitations and weaknesses to overcome.
Prime Minister Nguyen Tan Dung said that of the 14 targets set for 2015 there were 13 reached or exceeded, with only one target - forest coverage - falling short.
Of the 26 main targets in the five years from 2011 to 2015, 17 were achieved or exceeded while nine indicators were not met.
Most notably, GDP in 2105 is estimated at over 6.5 per cent - the highest for the last five years and exceeding the target of 6.2 per cent, the PM said.
Regarding bad debts, the PM said that as at September bad debts had fallen to 2.9 per cent and declined in 17 credit institutions, while liquidity and safety assurance systems have improved, contributing to macroeconomic stability.
The size of the stock market rose, with capitalization reaching 33 per cent of GDP, while the bond market is estimated to reach about 23 per cent by the end of the year.
The PM also indicated that the size and potential of the economy continue to grow. In the first nine months the number of new enterprises increased 28.5 per cent and registered capital was 31.4 per cent higher than in the same period of 2014. The number of operating business now stands at 525,000, an estimated 1.5-fold increase compared to the end of 2010.
Besides the positive changes in the socioeconomic situation, PM Dung also spoke of eight key weaknesses that must be overcome quickly.
The State budget structure is unsustainable, with a high budget deficit and increasing public debt; agricultural growth is low and agricultural exports face a range of challenges; the market economy does not operate well; capital markets are developing slowly; the labor market and the real estate sector are becoming more troublesome; labor productivity remains low; traffic order is limited; and there are many negative elements in culture and morality.
These limitations and weaknesses, according to the PM, are due to both objective and subjective reasons, but mostly subjective reasons.
The first is that awareness of Vietnam’s socialist-oriented market economy in many areas remains unclear. Therefore, the creation of institutions and policies is yet to be in line with those needed for a market economy and do not drive the mobilization, allocation, and efficient use of resources for development.
The second reason is that the implementation of policies and resolutions from the party and laws and policies from the State are limited in many respects.
Leadership, management, and administration of the socioeconomy are not suitable, are ineffective, and are yet to meet the development requirements of a market economy and the country’s international integration.
Finally, he pointed to lessons from the last five years in developing the country as being the need to take the interests of the country and its people as the highest goal and the necessity to improve accountability among government staff and especially among State and government leaders.