Government figures out key tasks and solutions for 2016

Monday, 11 January 2016
The Government has issued a Resolution on major tasks and solutions guiding and directing the realization of the Plan for socio-economic development and state budget estimate in 2016.

The overall goals of the socio-economic development plan in 2016 are to maintain macro-economy stability, improve growth quality, enhance the implementation of strategic breakthroughs, restructure the economy in accordance with transforming the growth model, promote the productivity, quality, effectiveness and competitiveness, tackle difficulties for businesses and accelerate production and manufacturing.

Illustrative image

Other goals include the development of culture, social progress and equality, ensuring social security and improving social welfare, enhancing administrative procedure reform, effectiveness of State management, anti-corruption and anti-wastefulness, strengthening national defense and security and the effectiveness of diplomatic works and international integration.

Major criteria consist of the GDP growth rate of 6.7%, the total export turnover up 10%, trade deficit under 5% compared to the total export value, consumer price index below 5%, total social development capital making up 31% of the GDP, poverty rate down by 4% and healthcare coverage upto 76%.

Exchange rate regulation

The Government asks the State Bank of Viet Nam (SBV) to cooperate with relevant ministries, agencies and localities to actively and flexibly regulate the monetary policy in close combination with the fiscal policy and macro-economy policies in order to control inflation, stabilize the macro-economy in support of economic growth.

The SBV will also take measures to stabilize foreign currency market, maintain appropriate exchange rate, increases the foreign reserves, keep close watch on happenings in the international financial and monetary markets to minimize the negative impacts of the international economic integration on domestic foreign exchange market.

The Ministry of Finance is responsible for ensuring financial and budget rules and disciplines.

The public debt, Government debt and foreign debt must be strictly controlled within the safety limit set by the National Assembly.

Key pillars of economic restructuring

Economic restructuring will be continued towards improving the effectiveness and competitiveness of the economy, concentrating on three areas such as public investment, State economic groups and corporations, commercial banks and credit organizations.

In terms of public investment, the Ministry of Planning and Investment will cooperate with other relevant ministries, agencies and localities to strictly control the objectives and effectiveness of investment and impacts on the macro-economy of the official development assistance (ODA) and foreign preferential loans and other credit loans for key and urgent projects.

Capital mobilized from other foreign and domestic economic sectors will be encouraged to supplement to the State capital in socio-economic infrastructure projects through forms of public-private partnerships (PPP), foreign direct Investment and joint ventures.

Regarding the financial market with focus on commercial banks and credit organizations, the SBV will join hands with other relevant ministries and agencies to continue restructuring weak credit organizations, facilitate merge and acquisition in the banking sector.  

For State-owned enterprises, the Ministry of Finance coordinates with relevant ministries and agencies to design measures to consolidate and improve the capacity of State management bodies, supervise corporate finance.

Export expansion and trade deficit control

The Government requires the Ministry of Industry and Trade develop more measures to speed up exports and expand exports to potential markets.

The Ministry also need to regularly check imports while intensifying quality control over imports, especially farm produce and consumption goods./.

Van Hai (Source: VGP)

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