Vietnam says economy back on track

He said the growth of gross domestic product (GDP) at 6 per cent this year, inflation at 7-8 per cent and other targets set by the National Assembly were possible.

He made the statement in response to concerns about economic growth and support measures for enterprises during the 3rd session of the 13th National Assembly.

He said all results related to economic growth, and production activities in the second quarter were better than the first quarter.

Specifically, the growth of GDP in the second quarter reached 4.5 per cent, higher than the first quarter (at 4 per cent), and the Index of Industrial Production increased by 4.4 per cent.

Total retail and service sales in the first five months recorded VND952 trillion (Bt1.43 trillion), 20.3 higher than the same period last year, while Consumer Price Index (CPI) growth in the first six months came to nearly 3 per cent, the lowest figure in the past three years.

Last month, about 4,000 enterprises stopped operating or went bankrupt while more than 30,100 new companies have been registered.

However, the economy has faced a lot of challenges, which have pushed the government to keep implementing measures to boost production and trading activities, he said. He added the government would keep implementing monetary and fiscal policies, settling bad loans, lowering interest rates and supporting enteprises to extend their markets and consume their inventories.

Besides, the management of investment resources from the state budget, state bonds and ODA would be improved.

Deputies also questioned restructuring of the national economy, the operation of state-owned enterprises and capabilities of state officers.

In response, Phuc said synchronous, comprehensive and effective measures to restructure the economy would be implemented to ensure growth and social security.

He said restructuring would raise the efficiency of human resources alongside the quality of education and training activities. The government would pay attention to solving all social issues raised during the economic restructuring process.

He added that state-owned enterprises would also be restructured to boost the 

efficiency of their operations.

However, Deputy Tran Du Lich from Ho Chi Minh City questioned methods to minimise corruption in state-owned enterprises and the responsibility of the government for losses associated with rampant and inefficient investment activities.