14th National Assembly convenes its 3rd session

Vietnam has fulfilled the targets set for the first four months of this year despite instability, increasing protectionism, fluctuating financial markets around the world, and Vietnam’s low economic competitiveness. During this period, the Vietnamese government focused on stabilizing the macro economy, promoted economic growth, restructured credit organizations, and fine-tuned laws to improve the business climate.

Deputy Prime Minister Truong Hoa Binh

Stabilizing macro-economy, promoting economic growth

The Vietnamese government is implementing strong measures to realize its target of 6.7% GDP growth. These measures include flexible monetary and fiscal policies, ensuringquality of credit growth, promoting agriculture, exports, and support industry, and stabilizing interest rates. Mr. Binh said: “The government will create incentives to help investors and enterprises accelerate project progress, boost exports, work out roadmaps to reduce processing for exports, and enable enterprises to benefit from free trade agreements and apply appropriate protective measures. We will focus on managing the domestic market, especially the retail market, promote scientific and technological application, and take advantage of the 4^th industrial revolution.”

The government will continue agricultural restructuring, closely follow changes in oil prices, promote support industries, increase localization, and develop the service and tourism sectors into spearhead economic sectors.

A resolution on bad debt settlement will be submitted to NA

At this meeting, the government will submit to the National Assembly a resolution on the settlement of bad debts and losses of SOEs. NA deputies will discuss revisions to the Law on Credit Organizations. Mr. Binh again: “Under the resolution, if approved by the NA, the government will focus on fine-tuning legal documents and strengthen measures to deal with weak credit organizations. We will work out a project to restructure credit organizations and deal with bad debts until 2020.”

The government will continue to restructure SOEs and fine-tune SOE equitization mechanisms.

Improving the business climate by fine-tuning legislation

Thanks to better legislation, Vietnam’s competitiveness ranking jumped 6 levels and its purchasing power and productivity have increased steadily. But weak policies on investment, competitiveness, and connection with FDI remain. The government will continue to strengthen the socialist-market economic mechanism and promote the private sector to become a driving force of the national economy, said Mr. Binh: “We urgently need to implement laws and resolutions and strengthen policies to ensure a fair business environment and involve the private sector in SOE restructuring. The government urges ministries, sectors and localities to improve the business climate, provide online public services, and embrace the 4^th industrial revolution.”