Illustrative image (Source: VNA)1. The 12th National Party Congress set a goal of rapid, sustainable economic development
TheResolution adopted at the 12th National Party Congress has definedtasks of stepping up renovation in a comprehensive and synchronous fashion;accelerating the economy fast and sustainably; and developing Vietnam into amodern, industrial country. The five-year average economic growth is expectedto reach 6.5-7 percent per year. By 2020, an average gross domestic product(GDP) per capita will stand at about 3,200-3,500 USD, whilst the proportion ofindustry and services will make up some 85 percent of the GDP. Total averagesocial investment in the next five years will account for 32-34 percent of theGDP, and State budget overspending will comprise of only 4 percent of the GDP.
2. National Assemblyapproves master plans for finance and investment
Thesecond session of the 14th National Assembly has approved a nationalfinancial blueprint in the 2016-2020 period, along with a middle-term publicinvestment plan. Accordingly, the proportion of State budget overspendingbetween 2016 and 2020 will not exceed 3.9 percent of the GDP. The annual publicdebt index, the Government debt, and the foreign debt are set within the limitof no more than 65 percent, 54 percent, and 50 percent, respectively, of theGDP.
3. Economy growsdespite difficulties
Thedrastic direction and administration of the Government, the high determinationof the whole political system, and the active involvement of the businesscommunity, have backed the national economy to continue recording a positivegrowth in 2016. The gross domestic product (GDP) was estimated to expand by6.21 percent compared to the previous year in spite of difficulties posed bynatural disasters and the marine environmental incident in the four central provincesand the global economic headwinds. The macro economy remained stable whileinflation was put under control.
4. Construction ofnuclear power plant in Ninh Thuan halted
Deputiesagreed to stop the implementation of the nuclear power project in the southcentral coastal province of Ninh Thuan at the second sitting of the 14th National Assembly. This was because since 2009 – the moment when thelegislature approved a policy of investing in the project - the domestic andinternational situation has witnessed a lot of socio-economic changes. On theone hand, Vietnam’s scientific and technological capability at present has beenlimited to develop nuclear power. On the other hand, the project’s economicefficiency has yet been ensured while the production cost of nuclear power ishigher than that of other energy resources.
5. Government issuesResolution 35/NQ-CP on supporting and developing businesses
Regardingbusinesses, especially private ones, as a driving force to increasecompetitiveness and economic autonomy, the Government on May 16, 2016promulgated Resolution 35/NQ-CP on supporting and developing enterprisesthrough 2020. The document sets the goal of having at least one million activebusinesses by 2020, including large-scale and financially strong ones. TheState is committed to ensuring equal rights for all companies without discriminationof business forms and economics sectors in accessing financial resources.
6. Number ofnewly-established firms hit record
Thenumber of newly-established businesses set a record high since 2013. More than100,000 companies have registered to set up with a total investment of over 800trillion VND (35.3 billion USD), up over 17 percent in number and 48 percent inregistered capital against 2015. The figures show that the new legal framework,solutions, and the action role of the Government in supporting and encouragingbusinesses to develop have continuously proved effective.
7. Maritimeenvironmental pollution incident in central region
Thewaste discharge of the Taiwanese-invested Hung Nghiep Formosa Ha Tinh Steel Co.Ltd caused serious impacts on the marine environment from the central coastalprovince of Ha Tinh to Thua Thien-Hue, heavily impacting local production andlives. With the policy of not exchanging the environment with investmentprojects, the Government, ministries, sectors and localities took drasticmeasures to strictly deal with the wrongdoings, address consequences, supportfishermen and force Formosa to make compensations.
8. The State Bank ofVietnam applies new exchange rate management mechanism
In2016, the State Bank of Vietnam (SBV) has applied new mechanism of exchangerate management. The SBV announced a reference exchange rate between VND andUSD on a daily basis. The new mechanism allows flexible fluctuations of dailyexchange rates according to domestic supply and demand of foreign currency andglobal market developments, but still ensures the regulatory role of the SBV inmonetary policy management.
9. Vietnam promotesinternational economic integration
Thetrade and economic ministers of 12 countries joining the Trans-PacificPartnership (TPP) agreement signed this global trade deal on February 4, 2016,in Auckland, New Zealand, marking the official completion of negotiations andthe start of ratification procedures in each country. After that, the freetrade agreement (FTA) between Vietnam and the Eurasian Economic Union (EAEU)came into effect on October 5, 2016. The conclusion of the TPP and FTA hasreaffirmed Vietnam’s efforts to promote international economic integration.
10. Vietnam setsrecord to welcome 10 million foreign tourists
Vietnamwelcomed 10 million international visitors for the first time in 2016, ayear-on-year rise of 25 percent. The country also served 62 million domesticvacationers. The tourism sector raked in 400 trillion VND (17.65 billion USD)in revenues. This is an important milestone in the tourism sector’s path tobecome a national spearhead economic sector and make Vietnam a primarydestination in the region.-VNA
VNA
