NA may adjust economic targets

(08-05-2009)

HA NOI — The National Assembly’s Economic Committee yesterday spotlighted a report on implementation of two NA resolutions on the Government’s Socio-economic Development Plans for 2008 and 2009.

At the session, many participants agreed that the GDP growth rate would only be between 5 and 5.5 per cent.

Suggestions by members of the committee will be collected by the Ministry of Planning and Investment in a report to be submitted to the NA Standing Committee and the NA at their next session.

At the meeting yesterday, NA Deputy Chairman Nguyen Duc Kien asked members of the committee to focus on adjusting socio-economic development targets this year.

Kien asked the committee to consider whether it was reasonable to adjust and reduce the GDP growth rate from 6.5 per cent to 5 per cent.

He also asked the committee to consider issuing Government bonds worth VND20 trillion (US$1.1 billion) to invest in capital construction, and he asked if it was right to allow maximum overspending (budget deficit) grow to 8 per cent, or to between 6 and 6.5 per cent.

Deputy Minister of Planning and Investment Nguyen Bich Dat told the committee that this year, the GDP growth rate might rise from 5 to 5.5 per cent; the consumer price index might increase by 6 per cent and about 1.5 million jobs would be created, 200,000 less than targeted.

Do Hoang Anh Tuan, Deputy Minister of Finance, said that to adjust overspending, the incomes from crude oil; from VAT tax for 19 groups of products; tax on textiles, garments and leather shoes should be considered.

Tuan said recently the Government had issued Resolution No 18 to implement priority policies to supply housing to low-income people, industrial zone workers and students.

Many members of the committee agreed that overspending should be set at 6.5 or 7 per cent.

Cao Si Kiem, Chairman of the Association for Small and Medium-sized Enterprises said the country’s economy was being affected by the global financial crisis and economic recession. The consumer price index had fallen quickly, and enterprises faced many difficulties. This negatively affected spending last year.

The situation required the Government’s careful guidance.

He also said the Government’s solutions were being implemented slowly.

He agreed that GDP growth rate should be between 5 and 5.5 per cent.

The use of VND20 trillion from the Government bonds should be applied more carefully, with reference to experiences of previous years, he said. — VNS

• Office rents tumble in first quarter -17/05/2009
• Delayed highway project gets cash injection -17/05/2009
• London cabs will promote images of Vietnam through the dreary U.K -17/05/2009
• National Assembly approves tax exemption -17/05/2009
• Housing market remains gloomy -08/05/2009

• Footwear sector forecasts exports to double -08/05/2009
• Vietnam wants increased legislative ties with Singapore -08/05/2009
• Foreign investors to hold 49% of public company stake -08/05/2009
• Foreign giants dominate fast food market -08/05/2009
• GDP growth forecast to reach 5.5 percent in 2009 -08/05/2009