This year’s economic growth target of 6 percent-6.5 percent huge challenge

On the morning of May 23, at the opening session of the third session of the 15th National Assembly, Deputy Prime Minister Le Van Thanh delivered a report on an additional assessment of the results of the implementation of the socio-economic development plan and the state budget in 2021 and that in the first months of 2022.

Regarding additional results in 2021, the Government stated that 5/12 targets failed to meet the set goal. For instance, the gross domestic product growth rate reached 2.58 percent compared to the target of about 6 percent. Plus, GDP per capita reached US$3,680 against the target of $3,700, the contribution of total factor productivity to growth is about 37 percent compared with the target of 45 percent-47 percent, and the percentage of poor households with a multidimensional approach decreased by 0.52 percentage points compared to the target of 1-1.5 percentage points and the labor productivity growth rate reached 4.71 percent compared with the target of 4.8 percent.

Some socio-economic indicators are higher than those reported to the National Assembly. The average consumer price index (CPI) increased by 1.84 percent, State budget deficit is 3.41 percent of GDP meanwhile the state budget revenue increased by 16.8 percent of the estimate. Moreover, the import-export turnover increased by 22.6 percent, the trade surplus reached $4 billion.

The Government affirmed that the results achieved in 2021 are very good in the context of the fourth outbreak of Covid-19 with the dangerous and faster Delta strain, seriously affecting all aspects of society.

Regarding the implementation of the socio-economic development plan in the first months of 2022, due to the influence of the Russia-Ukraine conflict along with the consequences of the Covid-19 pandemic, the world economy recovered more slowly than previously forecast.

Worse, inflation has been seen in many countries; therefore, the important partners increased the prices of many commodities, and prices of oil and some important goods fluctuated sharply.

Domestically, the country is returning to normalcy because the Covid-19 epidemic was basically under control, creating an important premise for socio-economic recovery and development while socio-cultural activities are gradually getting back to normal.

However, the price of some input goods increased, especially the price of petrol and oil, and the shortage of local workforce affected the production and business activities of enterprises and people.

In that context, the Government and the Prime Minister held many national conferences to implement the Socio-economic Recovery and Development Program, the Covid-19 Epidemic Prevention and Control Program as well as accelerated disbursement of public investment capital, and development of transport infrastructure while perfecting the country's institutions and regulations.

As a result, the epidemic was basically under control, strengthening the confidence and safety of people and businesses, and making an important contribution to socio-economic recovery and development.

The macroeconomy continued to be maintained stably, major balances of the economy were ensured, inflation was controlled, and the average CPI in four months increased by 2.1 percent. GDP growth rate in the first quarter reached 5.03 percent. The service and tourism sectors recovered quickly.

The national key traffic works are carried out; specifically, the East North-South Expressway project in the 2021-2025 period is being implemented by ministries, branches and localities in accordance with the plan.

At the same time, the Government submitted to the National Assembly at this session the investment policy on expressways including Chau Doc – Can Tho – Soc Trang, Bien Hoa – Vung Tau, Khanh Hoa – Buon Ma Thuot, Ring road 3 Ho Chi Minh City, Ring Road 4, Hanoi Capital area. Related ministries and agencies have been taken heed of social security issues.

The Government also reported highlights limitations, difficulties, and challenges such as production and business activities of enterprises and people still facing many difficulties. Many supply chains continue to be affected because of increased prices of input materials, especially petrol and oil prices. The country's energy conversion is still slow.

State budget revenue increased by 15.4 percent over the same period, but revenue from production and business activities only increased by 5.4 percent. National target programs and the implementation of programs on social-economic recovery and development are still slow.

The Government is determined to continue building an independent, self-reliant economy, associated with proactive, active, extensive, substantive, and effective integration; at the same time, it requires all levels, branches, and localities to continue to firmly grasp the situation, drastically implement synchronously tasks and solutions to create drastic changes in socio-economic development.

The Government will focus on controlling the Covid-19 epidemic and making a quick recovery, and sustainable socio-economic development; urgently implement the resolutions of the fifth plenum of the 13th Central Committee, especially with the focus on land, collective economy, cooperatives, agriculture, farmers, and rural areas; expeditiously complete and submit it to the National Assembly for consideration and amendment of the 2013 Land Law.

At the same time, the government will manage monetary, fiscal and other policies synchronously, and flexibly with other policies in order to maintain macroeconomic stability, ensure major balances and control inflation. Additionally, it ought to promote a sustainable increase in state budget revenue, thoroughly save expenses, especially non-business expenditures of an investment nature, and drastic implementation of solutions to strongly promote disbursement of public investment capital, ensuring efficiency…

The Government also is striving to complete 361km of the East North-South Expressway, phase 1 by the end of 2022. In the fourth quarter, simultaneously, 12 projects of the North-South Expressway in the East, phase 2, and the construction of the runway and terminal of Long Thanh International Airport will be commenced. It will submit to the National Assembly for consideration of five key national projects with regional connectivity comprising highway routes such as Chau Doc – Can Tho – Soc Trang, Bien Hoa – Vung Tau, Khanh Hoa – Buon Ma Thuot, Ring Road 3 in Ho Chi Minh City, Ring Road 4 in Hanoi.

The Government emphasized that economic development must be in harmony with cultural and social development and environmental protection. It will finalize promulgate regulations on the minimum wage for contract employees which will be applied from July besides paying attention to the development of affordable social housing for workers and low-income earners.