Hanoi (VNA) – Driving forces for Vietnam’s economic growth need to bemaintained not only in 2018, but also in the years to come, Prime MinisterNguyen Xuan Phuc said at the Government’s regular meeting on August 1.

“We should continue working to create market confidence, and win trust ofenterprises so as to branch out business and production in the coming time”, hestressed.

Regarding the country’s socio-economic development, PM Phuc noted that fourmacroeconomic targets have been ensured, including sound growth of grossdomestic production (GDP), price stability, reduction of unemployment rate, andnet export turnover. The nation’s unemployment index fell 2.2 percent for thefirst time.

Thanks to institutional reform, the Government’s direction, and benefits fromdeep global integration, the economy went into a reverse, starting to grow inthe second quarter.

High-tech application has initially improved labour productivity, he said,adding that Vietnam’s logistics index moved five steps to be in top three amongASEAN members, just behind Thailand and Singapore.

However, he pointed out some short-term risks that the economy may encounter,namely impacts of the US-China trade war, trade deficit, reversing foreigndirect investment (FDI) flow, reducing remittances, and trade protectionism.

“Our foreign currency reserve is now at 63 billion USD, but it cannot make surethat the economy is able to control the exchange rate amid impacts of globalfinancial market”, he said, requesting flexible management of the exchange rate.

PM Phuc agreed not to change financial policy in the fiscal year 2018,comprising gasoline tax, VAT, and prices of commodities and public services. Heordered tight control of education and health care service prices to preventsoaring inflation.

He asked relevant ministries to tighten fiscal discipline, complete budgetcollection plan, and accelerate disbursement of public investment in line withthe set plan.

Also, he urged the finalisation of public investment law, and construction ofkey infrastructure works, especially in transport sector.

Besides export markets, local firms shouldpay due attention to the nearly 100 million people domestic market by improvingservice quality and food hygiene and safety, he noted.

Regarding slow equitisation progress in some state-owned companies, PM Phucordered inspection in relevant localities.

Ministries and agencies must complete the draft Decree on amending and supplementingbusiness conditions, he said, recommending a cut of 50 percent of commoditiesthat must go through specialsied inspections, and more favourable conditionsfor both people and businesses.

Agricultural shake-up must be promoted, encouraging firms and cooperatives toland more investment in the sector to generate incomes for farmers. This shouldbe made in companion with market reorganisation in processing and manufacturingfor sustainable development for post 2020 period.

As economic growth is closely attached to local livelihoods and environment,the Government leader laid stress on environmental protection, and social orderand safety.

He lauded the police forces for busting a large-scale drug trafficking ring inSon La province and many other serious cases.

He ordered the Ministry of Agriculture and Rural Development and relevantministries and agencies to draw out specific programmes in response to naturaldisasters.

Mentioning critical losses in terms of officials following wrongdoings in theMinistry of Public Security and the Ministry of Information and Communications,PM Phuc called on Cabinet members to set examples in implementing theResolution adopted at the 4th plenum of the 12th Communist Party of VietnamCentral Committee on enhancing Party building and rectification, and preventingand curbing ideological, ethical and lifestyle degradation as well as themanifestation of “self-evolution” and “self-transformation” inside the Party.-VNA