Minister Nguyen Chi Dung: Three-pronged attack, total effort for the economy

That is the consistent viewpoint affirmed at the Conference to thoroughly grasp the Government's resolutions, the Prime Minister's directions on socio-economic development and 2016 work implementation of the Ministry of Planning and Investment, held on August 4 in Hanoi.

Speaking at the Conference, Minister Nguyen Chi Dung admitted that Vietnam's economy is facing many difficulties and challenges, while there is not much room for the economy to grow rapidly in the immediate future.

Therefore, according to the Minister, Resolution No. 1 on macroeconomic management solutions must be seriously implemented; Resolution No. 19 on improving the investment and business environment and Resolution No. 35 on supporting and developing businesses until 2020, as well as Resolution 60 on accelerating the implementation and disbursement of public investment capital in 2016.

Speaking at the Conference, Minister Nguyen Chi Dung emphasized his determination to bring the economy to the target target in 2016.

Photo: Chi Cuong.

It is also important to recall that, after 2015, the economy's growth reached its highest level in 5 years. In 2016, the Vietnamese economy faced many difficulties and challenges. One of the most obvious manifestations is that economic growth in the first 6 months of the year only reached 5.52%, lower than the growth rate of the same period last year. Despite difficulties and many forecasts that the growth target of 6.7% this year will be difficult to achieve, the Government remains consistent in its view of macroeconomic stability and does not adjust the growth target.

To realize the goal, the Government has issued a series of important resolutions mentioned above, creating "public armor" to comprehensively remove difficulties, resolve bottlenecks in the economy, as well as promote GDP growth.

The first public front: Drastically disbursement of public investment capital

One ​​positive piece of news, according to Ms. Phu Ha, Director of the Department of National Economic Synthesis (Ministry of Planning and Investment), is that after the Government issued Resolution 60, the disbursement of development investment capital has improved significantly. Specifically, in the first 7 months of the year, state budget capital disbursement reached 46.4% of the year plan, equivalent to the level achieved in the same period last year of 47%, an increase of 6.8% compared to the first 6 months of the year. Meanwhile, disbursement of government bond capital reached 31.5%, although still lower than 44% of the same period last year, but increased by 3.4% compared to the first 6 months of the year.

“Implementing Resolution 60, the Ministry of Planning and Investment has completed most of the assigned tasks, from appraising and submitting to the Government for decision 2 national target programs to build new rural areas and sustainable poverty reduction; approving investment policies for 21 national target programs; assigning government bond capital plans for 2016, as well as submitting to the Government a Draft Decree on specific mechanisms in construction investment management for a number of projects belonging to national target programs...", Ms. Phu Ha said.

However, importantly, there are still many tasks ahead to be done to promote disbursement of investment capital in 2016, from capital appraisal and the ability to balance capital of projects, to allocating the remaining capital and adjusting the public investment capital plan for 2016. Not to mention, according to Ms. Ha, one of the top priority tasks currently is to build a socio-economic development plan for 2017, as well as the medium-term public investment plan for the period 2016 - 2020.

“If by September 30, the disbursement of the 2016 planned capital is still low, the 2017 planned capital will not be allocated. In developing a medium-term public investment plan, capital will only be allocated to urgent, inter-regional projects, to ensure centralized use of capital and improve efficiency,” Ms. Phu Ha said.

Many tasks are still being drastically carried out by the Ministry of Planning and Investment, to properly implement Prime Minister Nguyen Xuan Phuc's direction on "not allowing the situation of having capital that cannot be disbursed, affecting economic growth".

Along with that, regarding the process of developing the 2017 plan, Minister Nguyen Chi Dung said that it is necessary to innovate to build the fastest and most effective plan and assign the fastest and most effective implementation. "Building plans is important, but it's time to innovate the method of building plans, spend time researching institutional reforms, innovating growth models, building strategies, and reviewing development planning...", Minister Nguyen Chi Dung emphasized.

The second attack: Improving the investment and business environment

Very excited about the fact that for three consecutive years the Government has issued Resolution No. 19 on improving the investment and business environment, Mr. Nguyen Dinh Cung, Director of the Central Institute for Economic Management Research, on the one hand affirmed that this has brought significant improvements not only to the investment and business environment, but also to Vietnam's competitiveness, but still cannot help but worry when the goals set out in these resolutions are “ambitious”.

“In 2015, our business environment has improved 3 levels, according to the Doing Business 2016 ranking. Compared to ASEAN-4 countries, Vietnam is recognized for more reforms, but the gap on most of Vietnam's indicators compared to ASEAN-4 countries is still far", Mr. Cung said and frankly, if it comes to the goal of comprehensive reform, removing barriers, creating facilitation, the gap is still very large.

Even mentioning the story of a business importing fabric for only 100,000 VND/meter, but the quality inspection fee is up to 2 million VND, or importing a batch of refrigerators worth 178 million VND but having to pay a sample testing cost equal to more than 75% of the value of the batch to get an energy label, Mr. Cung said that there are still many things that need to continue to be reformed.

Of course, when we are still so far away from the goal of achieving ASEAN-4 standards by 2016, and even jumping to the second or third level by 2020, the task of improving the investment and business environment and enhancing competitiveness is very heavy, especially for the Ministry of Planning and Investment. According to Mr. Cung, although the two indicators of starting a business and protecting investors, which are the "responsibility" of the Ministry of Planning and Investment, have been greatly improved in recent times, it is necessary to continue to review and amend issues related to business conditions. Similarly, developing a law to amend many laws related to investment and business will also not be an easy task in the near future.

However, improving the business investment environment is the most effective way at present to create motivation for business investment, thereby promoting economic growth.

Third armor: Supporting business development

Improving the investment and business environment is one thing, the important thing is to find solutions to overcome difficulties for businesses, considering this a fundamental solution to promote economic growth.

In fact, according to Mr. Ho Sy Hung, Director of the Department of Enterprise Development (Ministry of Planning and Investment), right after the Prime Minister's meeting with businesses at the end of April, Resolution No. 35 on supporting and developing businesses until 2020 was issued. The Government's commitment is very clearly affirmed, which is to consider businesses as the driving force for economic development, businesses have the right to freely do business in areas that the State does not prohibit, and do not criminalize economic and civil relations...

A positive point is that, immediately after the Resolution was issued, a series of ministries, branches and localities issued action programs to implement this resolution. Business dialogue programs have also been widely organized to remove difficulties and obstacles for the business community. Business support hotlines have also been established. Many specific recommendations have been proposed by ministries and branches, from prohibiting regulations on administrative procedures in circulars, leading to a lack of initiative in amending and supplementing ministries and branches to simplify administrative procedures for businesses, to opening foreign currency lending channels, through which credit institutions continue to be granted short-term loans in foreign currencies to meet domestic short-term loan needs to support exports...

Regarding this issue, former Deputy Minister of Planning and Investment Cao Viet Sinh said that there is still a long way from resolution to life, and there are still harassments below, causing difficulties for businesses.

“We must have policies to nurture businesses, especially domestic businesses, to avoid the situation where large businesses grow a little and then sell them,” Mr. Cao Viet Sinh said.

Information from Mr. Hung, in the coming time, the implementation of the Resolution will be further promoted. Once all three "attacks" are implemented drastically and effectively, the economy will have more motivation to reach the finish line on schedule.

And the rest

Quite clearly, in addition to solutions to promote growth in the short term, it is necessary to continue implementing solutions to resolve bottlenecks in the economy, ensuring that the economy can grow quickly and sustainably in the following period.

Referring to this issue, Mr. Dao Van Hung, Director of the Academy of Development Policy, said that, in the current context, we must still be steadfast with the goal of macroeconomic stability, because the "frequency" of high inflation returning is increasingly frequent, only every 3 years. "If we are not steadfast, in just 1-2 years there will be high inflation, which will lead to reduced growth, then our road will become even more bumpy," Mr. Hung said, emphasizing the need to restructure public debt, restructure the financial system, including state-owned commercial banks, as well as restructure state-owned enterprises to create conditions for the private sector to develop.

“State-owned enterprises should no longer be allowed to produce beer or cigarettes, but should only hold important fields,” Mr. Hung said.

And Mr. Nguyen Bich Lam, Director General of the General Statistics Office, emphasized improving the competitiveness of the economy through improving the productivity, quality and efficiency of the economy. Mr. Lam also expressed hope for the project that the Central Institute for Economic Management Research will submit to the Government to improve national competitiveness.

Former Deputy Minister Cao Viet Sinh emphasized institutional reform in which the Ministry of Planning and Investment is one of the pioneers. "We must always keep that fire of reform," Mr. Cao Viet Sinh emphasized.

A lot of work needs to be done and the responsibility is not just the Ministry of Planning and Investment's. However, Minister Nguyen Chi Dung affirmed that the Ministry of Planning and Investment must focus on advising the Government on socio-economic development solutions, monitoring the implementation of the Government's resolutions, as well as focusing on quickly delivering plans to promote economic growth.

Minister Nguyen Chi Dung also emphasized the focus on finding new development models with a long-term vision to create new momentum for economic growth and development breakthroughs for the next period.

“There is not much time left in 2016, so all officials of the entire industry must uphold a sense of responsibility, how can we successfully implement the socio-economic development goals of 2016, worthy of being a general advisory agency on macroeconomic management for the Government”

Minister of Planning and Investment Nguyen Chi Dung

Nguyen Duc