[12 Jan. 2013] - The Government has just issued its first resolution in 2013 defining major solutions to realize the socio-economic development and budget estimate plan for 2013. 

Viet Nam plans to obtain a GDP growth rate of 5.5% in 2013

The overall targets of the socio-economic development plan for 2013, approved by the National Assembly, include more stable macro-economy, lower inflation rate, and higher growth than 2012.

Accordingly, Viet Nam expects to obtain a GDP growth rate of 5.5%; export turnover increase of 10%; excess of imports over exports at 8%; CPI increase of 6-6.5%; and poor household reduction of 2%.

In its Resolution 01/NQ-CP released on January 10, the Government required ministries, agencies and people’s committees to focus on the following nine groups of solution:

1.    Strengthening macroeconomic stability and reining in inflation;
2.    Overcoming difficulties to boost production and business;
3.    Creating strategic breakthroughs in economic restructuring and changing the model of growth;
4.    Guaranteeing social security and welfare and improving people’s living standards;
5.    Developing education, science and technology and public health;
6.    Strengthening state management over land, resources, environment protection, disaster prevention and coping with climate change;
7.    Speeding up administrative reforms, highlighting people’s mastership, fighting corruption and prodigality, maintaining social order and safety;
8.    Guaranteeing national defense and security, socio-political stability and diplomatic work;
9.    Enhancing information work for social consensus.

Budget overspending kept below 4.8% of GDP

The Government requires the State Bank to adopt proper and effective monetary policies which must be closely associated with fiscal policies to control inflation and reach a sound growth rate.

The State Bank also needs to improve the balance of international payment and raise the State foreign exchange reserves, the Resolution says.

Meanwhile, the Ministry of Finance is assigned to improve the budget collection and minimize expenditures, so that the budget overspending can be kept not higher than 4.8% of GDP.

Funding enterprises and clearing bad debts

These are two solutions to promote production and business activities.

Credit organizations, under the directions of the State Bank, should help enterprises access to and take loans. Priorities will be given to the production of exports, agriculture, supporting industries, small and medium enterprises, hi-tech companies, and effective projects.

The State Bank is urged to submit to the Prime Minister the Plan on clearing bad debts and the Plan on establishing the Viet Nam Asset Management Company for approval.

The Ministry of Finance will design new financial institutions, such as the Housing Savings Fund and the Real Estate Investment Fund, to warm up the frozen real estate market.

Stimulating the market and clearing inventories

The Government assigns the Ministry of Industry and Trade, together with the Ministry of Construction and local authorities, to increase the sales of goods of high inventory, such as steel, cement and building materials.

It is necessary, says the Resolution, to make use of all chances to raise export volume to the current markets while accelerating export to potential markets (VGP).