GDP growth forecast at 5.5 percent in 2013

The Ministry of Planning and Investment (MPI) presented a report on major targets proposed for 2013 at a meeting of the National Assembly’s Committee for Economic Affairs in Hanoi on October 10.

It forecast that the country would record an export turnover of around US$124.3 billion while keeping its import surplus ratio at 8 percent. Over budget spending would not surpass 4.8 percent of GDP, and total social investment capital would account for 30 percent of GDP.

The MPI emphasised the primacy of stabilising the macroeconomy and curbing inflation over the coming year, saying Vietnam will continue tightening its monetary policy, seeking interest and inflation rate harmony, and ensure an appropriate increase in outstanding debts as a means of easing the difficulties businesses face accessing bank loans.

The report stressed the need to strictly manage the banking system’s activities, ensure liquidity, prevent fraud, and provide up to date, accurate information on local credit markets.

The report called for more transparency in fiscal policy, particularly in the areas of revenue collection and spending and Government bonds and public investment. It recommended settling debts owed by State-owned businesses and the Government.

The report also touched upon price management, saying that State interventions are needed to control the costs of essential products like electricity and fuel.

The MPI proposed reducing corporate income tax and offering incentive loans for local businesses struggling with excessively high levels of inventory.