The Government leader made the request at a meeting with the ministry in Hanoi on April 21 after ministries, agencies and experts recommended solutions for the Government to realize key socioeconomic targets for this year.

Representatives of ministries and experts discussed the impact of unfavorable global market developments on Vietnam’s growth, according to the Government’s portal Chinhphu.vn.

They suggested measures to help enterprises ride out difficulties, lower loan interest rates, boost restructuring of State-owned enterprises (SOE) and public investment, and reduce reliance on official development assistance (ODA) loans.

Phuc told the Ministry of Planning and Investment to ensure a reasonable gross domestic product (GDP) growth rate in the coming time.

Phuc said since early this year, the economy has been facing a raft of challenges involving oil prices, business development, and the State budget. Along with East Sea and other issues, the challenges will make this year’s GDP growth target of 6.7% difficult to achieve.

The first quarter of this year saw GDP growth slowing compared to the same period in 2015. Therefore, the Government and the ministry should enhance governance to support growth, Phuc said.

To meet this year’s growth target, the Government and the ministry need to find ways to solve problems with production, facilitate business operations, and stabilize the macro economy.

Besides, Phuc wanted a favorable business environment for citizens and enterprises.

Minister of Planning and Investment Nguyen Chi Dung said GDP grew 5.46% in the first quarter, with the agro-aqua-forestry industry falling 1.23%, the manufacturing and construction sector up 6.72% and the service sector up 6.13% year-on-year.

The construction industry obtained growth of 9.94%, the highest since 2010.

Investments totaled VND273.6 trillion in January-March, or 32.2% of GDP, rising by 10% versus the same period last year. Total foreign direct investment (FDI) approvals nearly doubled last year’s figure.

Speaking at the meeting, Phuc told ministries and agencies to suggest solutions to translate the GDP growth target for this year into reality. They should concentrate on improving institutions and doing away with hindrances to growth.

He called for efficient management mechanisms for public spending and procurement, and transparency for tenders.

The Ministry of Planning and Investment was told to cooperate with relevant ministries and agencies to review projects of national significance, with an initial focus on projects that cost at least VND10 trillion (US$448.6 million) each.

The ministry should speed up SOE equitization and State capital divestments to raise funds for projects in need of capital.

The ministry was assigned to closely cooperate with the Vietnam Chamber of Commerce and Industry (VCCI) in organizing a meeting between PM Phuc and businesses next week.

“Businesses are an important resource and we have to make the most of this resource to fuel growth,” Phuc said and underscored the need to inspire startups.

Nguyen Dinh Cung, president of the Central Institute for Economic Management (CIEM), suggested at the meeting that the Government have action plans to back enterprises, particularly startups.

Source: SaigonTimes.