Processing and manufacturing which grew more than 13% were the two drivers of economic growth in the first half of the year. Social investment estimated at more than 32 billion USD, was up more than 10% over last year. The non-state sector recorded the highest growth. These results reflect the soundness of the Party’s decision to promote the private sector.
Challenges identified
Conference delegates identified several challenges facing Vietnam in the remaining months of the year including a decline in GDP growth from 7.45% in the first quarter to 6.49% in the second. The CPI index increased from 0.55% in May to 0.61% in June. If the CPI keeps rising, it will be difficult to cap inflation for year at 4%. Prices are forecast to rise at the beginning of the new academic year and in the last months of the year.
Economists say the world economy is unlikely to maintain its growth next year which will hurt developing and exporting countries like Vietnam. Alternative plans are needed to maintain macro-economic stability and prompt economic growth. Vietnam will need to accelerate economic restructuring, and boost the quality of growth in all sectors in order to strengthen the economy’s resilience to unpredictable fluctuations in the global economy. Minister of Planning and Investment Nguyen Chi Dung said: “We need to be flexible and closely follow the developments of the global economy in order to work out prompt solutions. We also need to strengthen economic restructuring, finalize a national strategy on international integration in the context of the 4th industrial revolution, promote the private sector and get it involved in global value chains, and accelerate the disbursement of public investment capital.”
Support from localities
Leaders of localities introduced specific measures that showed their determination to achieve the set targets. They said they will focus on increasing growth quality and mobilizing resources to upgrade their infrastructure. Chairman of the Hanoi Municipal People’s Committee Nguyen Duc Chung said: “Hanoi will continue administrative reform and implement the Law on Small and Medium Sized Enterprises. As of August this year, we will focus on re-organizing public non-business units and creating production chains to improve economic efficiency.”
Nguyen Thanh Phong, Chairman of Ho Chi Minh City’s People Committee, said: “Ho Chi Minh city will support enterprises, accelerate equitization, reorganize enterprises, promote maritime transportation, and develop innovative urban areas in the east of the city. We will implement coordinated measures to maintain the city’s economic growth.”
Vietnam targets a GDP growth rate of 6.7%