Deputy Prime Minister Nguyen Xuan Phuc, delivering a Government report on socio-economic development plans for the 2016-2020 period at the National Assembly session in Hanoi on March 21, said gross domestic product (GDP) would grow 6.5-7% a year in the period.
At the opening of the final session of the 13th NA, Phuc said by 2020 GDP per capita is expected to reach US$3,200-3,500, above US$2,109 in the 2011-2015 period. Industrial and services sectors would account for 85% of GDP, and budget overspending would make up 4% of GDP.
The average development investment in the five-year period would equal to 32-34% of GDP.
The Government aims for an annual labor productivity increase of around 5%. Labor in the agricultural sector would account for 40% of the country’s workforce. Trained labor would make up 65-70% of the workforce and urban unemployment would be below 4%.
The urbanization rate is targeted at 38-40% in 2020, and 95% of residents in urban areas and 90% of people in rural areas would have access to clean water. Around 85% of harmful garbage and 95%-100% of hospital waste would be treated.
Up to 80% of the nation’s population would be covered by medical insurance and the poor would fall by 1-1.5% a year in the five-year period.
To realize the targets, Phuc said the Government has drawn up measures to further develop a market economy, stabilize the macro economy, improve national competitiveness and business environment, and control inflation.
The Government will make more effort to promote trade, develop brands for Vietnamese products, support local enterprises to take part in the local retail market and bolster startups.
More supporting policies will be issued to prop up a hi-tech agricultural sector and application of technology to agriculture. The Government looks to a rise of 2.5-3% in added value in farm produce.
The Government will give priority to developing electronics, information technology, software and new building material sectors and those industries that support the agricultural sector.
Building strong distribution, wholesale and retail systems as well as e-commerce are also the focus of the Government as this will help step up Vietnam’s participation in the world’s distribution network.
Recommendations to achieve targets
Nguyen Van Giau, head of the NA’s Economic Committee, spoke in favor of the Government’s targets while delivering a report on assessment of the socio-economic development plan for the 2016-2020 period.
However, Giau called for the Government to draw up detailed plans to deal with emerging economic issues and make the most of the nation’s stronger international integration as well as the establishment of the ASEAN Economic Community (AEC) and new free trade agreements including the Trans-Pacific Partnership pact.
The socio-economic development plan should funnel more investment into agriculture and rural development, and cope with drought in south-central and Central Highlands provinces, and drought and saltwater intrusion in the Mekong Delta.
Giau suggested the Government find effective solutions to improve the investment environment and the balance of trade, speed up administrative reform, reduce payrolls, cut bad debt and budget overspending, and help businesses ride out difficulties.
The Government would have to take bold steps to solve chronic traffic jams in HCMC and Hanoi, review and adjust road tolls to make life easier for residents and enterprises, ensure food safety and hygiene, and crack down on fake and substandard products.
As infrastructure development is crucial to economic growth, the Government is urged to upgrade and expand the north-south railway, improve the performance and competitiveness of major general seaports, and swiftly complete procedures for starting work on the Long Thanh international airport in Dong Nai Province as scheduled.
Giau called on the Government to complete the restructuring of State-owned enterprises as planned and improve mechanisms and policies to pave the way for private firms to have equal access to opportunities and resources, and promote cooperation between enterprises in different sectors.
It is important to continue restructuring the domestic financial market as well as develop capital, insurance and securities markets in accordance with the five-year socio-economic development plan. Strong stock and bond markets will help raise more funds for development investment.
Giau recommended the Government review personnel and eliminate those who cause trouble for enterprises and residents. “Solving those issues will create a major driving force for socio-economic development in the next five years.”
Source: SaigonTimes
Keywords: Gov’t, targets growth, 6.5-7%, in next five years
