Growth 6.5% next year forecast

Viet Nam’s economy is set to grow by 6.5 per cent during 2012, according to Directive No 922/CT-TTg, released yesterday.

The directive calls on ministries, authorities, State economic groups and corporations to submit their socio-economic development plans and budget estimates for 2012 before August 2011.

The 2012 objectives include stabilising the macro economy, curbing inflation and reaching an economic growth rate higher than that of 2011 in order to ensure social security, improved living standards, political stability, defence and security, law and order and the improved efficiency of international integration.

A strict and prudent, yet flexible monetary policy is necessary in order to achieve a balance between monetary and fiscal policies, control inflation, stabilise local currency and increase foreign currency reserves.

Prime Minister Nguyen Tan Dung said that the government was committed to imposing tighter controls and greater transparency in terms of public spending and investment, especially regarding investments using public budgets, Government bonds and State-owned enterprises.

The government will additionally aim to reduce surplus spending while keeping government, public and foreign debt at a safe level.

Top governmental priorities for 2012 include ensuring transport safety, preventing drug use and prostitution, consolidating national defence independence and sovereignty.

Regarding national budget estimates, PM Dung suggested budget collection account for 24 per cent of the Gross Domestic Product (GDP). Domestic tax revenues, excluding those from crude oil and land use, will increase from 16-18 per cent with import-export revenues set to increase by 7 per cent compared to 2011.

Dung called on the ministries of Planning and Investment and Finance to develop a framework for 2012 socio-economic development and budget estimate during June, to be circulated amongst relevant ministries, authorities and agencies in order for them to respond to the MPI and MOF in August.

The two ministries must complete 2012 socio-economic development and budget estimates by September, submitting both to the Government for approval and reporting to the National Assembly in accordance with the State Budget Law. — VNS

Tags: Vietnam economic, Vietnam economic growth, Vietnam economy, Vietnam economy 2011, Vietnam GDP 2011, Vietnam GDP 2012