Prime Minister addresses Vietnam Business Forum and outlines three key strategies for stronger development.
“Vietnam’s achievements have not been stable or commensurate with its potential,” Prime Minister Nguyen Tan Dung told the Vietnam Business Forum 2015 in Hanoi today, while noting that economic development in the first five months was better year-on-year.
The PM heard recommendations from domestic and international economic organizations at the forum and assured participants that all opinions will be recorded and resolved by authorities.
“The government will try to bolster achievements, improve the business climate and its competitive capacity, and resolve any difficulties,” he said. Moreover, the government will keep inflation at less than 5 per cent in the years to come.
He also promised to keep the exchange rate at a suitable level and increase the country’s foreign currency reserves. “The reserves will cover at least 12 weeks worth of imports,” he said. The State budget deficit is expected to be around 5 per cent this year and less than 5 per cent in the 2016-2020 period, to meet the target set in the new budget law, of less than 3 per cent. Public debt is also expected to stay within limits.
The trade deficit is targeted at less than 5 per cent each year and export value is to increase about 10 to 15 per cent annually.
“GDP growth in 2015 is expected to be 6.2 per cent,” he told the gathering, and forecast growth in 2016 to 2020 of 6.5 to 7 per cent each year.
Three key strategies
The three key strategies to be focused on are reforming market institutions, developing infrastructure, and training human resources. Regarding market institutions, the PM committed to improving the market economy and reducing the number of poor households. Operations within government will also be improved.
In infrastructure, he called for all capital sources, especially those from the private sector, in the form of public - private partnerships (PPP). He will provide favorable conditions for investors to come to Vietnam. He also emphasized that electricity shortages would not occur in Vietnam because standby sources are about 20 to 25 per cent. The electricity price will move in line with market movement, he added.
On training human resources, he called for foreign investment in the sector and committed to adopting solutions to develop workforce skills and the ability of trainers.