Vietnam Govt Proposes National Assembly Cut 09 GDP Growth to 5 per cent
First Deputy Prime Minister Nguyen Sinh Hung has proposed the National Assembly, the highest legislative body, to lower GDP growth to 5 per cent from 6.5 per cent for 2009 amid the global downturn.
The assembly should approve state budget deficit of 8 per cent of the country’s GDP from 4.82 per cent, plans to issue additional g-bonds worth VND20 trillion to raise funds for demand stimulus packages, Deputy PM Hung urged in a statement addressing the one-month working session of the assembly.
The government also proposed the assembly slash exports growth to 3 per cent from the initial target of 13 per cent this year.
The domestic economy, which grew at 3.1 per cent in the first quarter, is showing signs of recovery, Mr Hung noted, highlighting that Vietnam had licensed 21,000 new companies between January and April, which have a combined registered capital of VND104.3 trillion (US$6.135 billion).
The Southeast Asian country also licensed US$6.4 billion FDI projects between January and April, Mr Hung added.
Fundamentals of the economy are stable in the period; total deposits had expanded 13.6 per cent since early 2009 while total outstanding loans pumped by banks and financial companies into the economy had grown 14.9 per cent.
“Top tasks for Vietnam are to combat the economic slowdown and curb inflation this year,” Mr Hung emphasized.
Inflation is forecast to be capped at below 10 per cent this year, state media said. (Deputy PM’s Statement, The People)
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