Government projects GDP growth of 6.7% in 2017

Thursday, 2017-10-12 11:10:24
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NA Vice Chairman Do Ba Ty speaks at the meeting
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NDO/VNA – The Government has projected a GDP growth rate of 6.7% in 2017 in a report submitted to the National Assembly Standing Committee during the Committee’s 15th session in Hanoi, on October 12.

According to the government’s report, the macro-economy has been stabilised, while inflation has been kept below 4%. The gross domestic product (GDP) is estimated at VND5,000 trillion or nearly US$225 billion.

Based on the socio-economic development plan for 2016-2020 adopted by the legislature, the projected performance of the economy in 2017 and the current domestic and international situation, the Government envisions that the GDP is expected to expand by 6.5-6.7% in 2018 and export turnover is expected to increase by 7-8%. The consumer price index would rise by an estimated 4% and total social investment would account for 33-34% of the GDP next year, according to the projection.

The majority of the NA Standing Committee members shared the Government’s view that most of the major socio-economic development targets would be completed this year, noting that the economy remains stable and the environment for business and production continues to improve.

However, they expressed some concern that the economic restructuring process, in combination with shift to new growth model, raising productivity and economic competitiveness remains slow and below expectations.

Many of them expressed reservations with regards to the fulfilment of the 6.7% GDP growth goal, stating that there is not much ground for expanding domestic consumption, foreign sector exports, manufacturing, and processing in the remaining months.

NA Vice Chairman Uong Chu Luu said that it is the first year that all of the 13 socio-economic criteria would be met or surpassed.

He asked the government to explain to the legislature as to which factors would help bring about the required results and which resources could ensure a 6.7% growth rate.

The Vice Chairman also requested that the Government clarifies why it is confident that State budget collection will meet its target in 2017, when domestic revenue only rose 2.1% from the estimate and revenues collected from State, foreign-invested and non-State enterprises failed to meet the estimates.

NA Vice Chairman Do Ba Ty said that in order to achieve a 6.7% growth rate this year, the figure for the fourth quarter must hit 7.4-7.5%, which is a challenging task. Moreover, disasters and floods will still pose challenges to the farming sector.

He asked the government to devise the most feasible plans with which to fulfil the set targets.

On the socio-economic development plan for 2018, Ty called on the government to identify the factors that can affect the impact of domestic production and free trade agreements on the growth rate.