Vietnam’s National Assembly deputies have expressed much concern about the country’s growth quality, citing low investment efficiency, high inflation, widening trade deficit and state budget overspending as major reasons.
The concerns were raised at the on-going eighth meeting session of the 12th NA in Hanoi, where deputies discussed the Government review of this year’s socio-economic targets and the previewing of the 2011 plan.
Trade and state budget deficits would continue thorny issues and likely hurt the national macroeconomic stability not only this year but in the coming years as well, Tran Du Lich, deputy of Ho Chi Minh City said.
Lich pointed out that the country’s credit- and public investment-based economic growth has put more pressures on imports, prompting trade deficit to rise. Lich are calling for urgent measures for the issues.
Deputy Vo Thi Hong Thoai from the southernmost province of Bac Lieu also sought measures to reduce “excessive” imports.
“It will be difficult to curb trade gap at below 15% of the total export revenues by 2015 from current 19% without a breakthrough policy,” she said. Thoai proposed fostering industries through incentives such as those offered to foreign direct investors as a way to reduce unnecessary imports.
Many deputies had raised worries about inflation, urging the Government to curb the consumer price index at less than 7% next year from a possible 9% this year as high inflation would have a negative influence on low-income people, especially farmers.
They proposed controlling the state budget deficit in 2011 at below 5% of the GDP, compared to 5.59% this year, in order to ensure the country’s financial security.
Regarding the investment efficiency, deputies called for tougher management on operations of state-owned groups and corporations to prevent manipulation of State groups, create a healthy business environment and restore local confidence in the leadership of the Party and Government.
Huynh Ngoc Dang from the southern province of Binh Duong said for long time, there had been a shortage of legal policies and management mechanisms for economic groups which were managing most national natural resources.
Deputies asked the Government and the NA to audit the activities of State economic groups, especially Electricity of Vietnam, to form a foundation to assess the economic group model. The Government must report the groups’ State capital usage and development activities every year to the NA, they said.
Deputy Nguyen Minh Thuyet also proposed to establish a standing committee to check responsibilities of the government in the case of state-run shipbuilding group Vinashin, which has been driven to the brink of bankruptcy.
He called for a vote of no confidence in Prime Minister Nguyen Tan Dung, who appointed the former chairman of Vinashin, Pham Thanh Binh. “It's painful for me to say that,” the deputy said.
In a report represented at the opening ceremony of the meeting, Prime Minister Nguyen Tan Dung affirmed that the country’s economy has quickly recovered from the crisis and would likely obtain a growth rate of 6.7% versus the NA’s target of 6.5%.
Industrial production is expected to grow 7.6% in 2010 while agricultural sector will post a growth of 2.6%. The country’s exports will rise 19.1%, compared to a 16.5% increase in imports. Full-year trade deficit is estimated at $13.5 billion, or below 20% of total export revenues. (CPV, Vietnamplus)
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