VietNamNet Bridge – Despite positive results handling inflation
and deficit reduction, law makers expressed concern that Viet Nam's economy is
facing signs of stagnation at yesterday's 12th session of the National
Assembly's Standing Committee.
Discussing of the country's
socio-economic and State budget in 2012 and plans for 2013, deputies said the
Government should declare comprehensive measures and policies promote the
economic restructuring process and reform of growth models.
Deputies also agreed the
Government should continue to control inflation, macroeconomic stability and
flexibility in monetary policy management. They felt priorities should be
helping enterprises reduce amounts of surplus stock, handling stagnant debts from
state invested projects and speeding up the disbursement process of State
budget capital projects.
The Government estimates that
economic growth will increase by 5-5.5 per cent this year, below the NA target,
while CPI will reach the 8 per cent goal by the end of 2012.
Macroeconomic stability and
inflation is controlled but the risk of high inflation sill remains, according
to NA Economic Committee Chairman Nguyen Van Giau.
Unreasonable management and slack
monitoring of market activities in a number of areas have stunted consumer
confidence, exacerbated by increased medical and education fees nationwide,
which have pushed the CPI ever higher, according to Giau.
The Government report said only
10 out of 15 NA socio-economic targets will be met or exceeded. Five others are
forecast to fall short including GDP growth rate; rate of gross investment
capital for society development compared to GDP; job creation; poverty
reduction; and forest recovery rates. The majority of failed targets are those
that are vital indicators of economic sustainability in the medium to long
term.
Deputies said that pressure to
meet future targets will increase due to the growth rate shortfall, as well as
the sub-par job creation and poverty reduction figures.
Planning and Investment Minister
Bui Quang Vinh said bad debt is high in many industries, including plastics,
processing, tobacco and heavy industries like cement, steel and manufacturing.
"Measures are needed to
encourage consumption in these fields through the expansion of consumption
markets domestically and abroad," said Vinh.
He also added that around 40,000
struggling enterprises need help to access preferential loans.
Next year, the Government is
aiming for GDP growth of 5.5 per cent, a CPI increase of 7-8 per cent and trade
deficit at roughly 8 per cent of total export turnover. Budget deficit is aimed
to be below 4.8% of the country's GDP; with 1.6 million jobs being created and
the national poverty rate falling by 2 per cent.
VietNamNet/VNS
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