Deputy PM unveils gov’t performance priorities

Deputy Prime Minister Nguyen Xuan Phuc was speaking at the National Assembly hearing in Hanoi on June 14.

The government will improve borrowing power of businesses by cutting lending interest rates, simplifying formal procedures, and rescheduling tax deadlines. The production and processing of key export items—such as rice, coffee, Trafish (Pangasuis), and shrimp—will be prioritised.

The government will try to inject a monthly VND40 trillion worth of credit into the national economy as a way of stimulating sales and consumption. It is targeting a 12% credit growth rate by year’s end.

“The Vietnam Asset Management Company will begin its operations imminently, settling credit organisations’ non-performing loans. It is expected to purchase VND105 trillion worth of bad debts this year and force the debt ratio below safe limits by 2015,” said Phuc.

 To spur on the sluggish property market, the government will speed up disbursing the VND30 trillion bailout package targeting low-income earners.

In an effort to support businesses in difficulty, Phuc said the government will also continue corporate income and value added tax reductions and extensions, estimated to total VND37.7 trillion in 2013.

It will apply stringent oversight to ensure the effectiveness of public investments, allocate additional capital to crucial and time-sensitive projects, and streamline State budget and disbursement of government bond sales and investment capital.

The government plans additional bond issuing to mobilise capital for upgrading the National Highway 1A and many other key healthcare and irrigation projects.

An important task is completing policies and mechanisms to attract private domestic and foreign investment into high tech and energy saving projects, striving to raise total social investment to 33-35% of GDP.

Sharing the deputies’ view that the market is vital to businesses, Phuc voiced the government’s determination to alleviate bad debt, stimulate consumption, and reduce excess inventories.

“The government will support businesses in expanding the distribution network, developing markets and trade centres, and stabilising market prices,” the Deputy PM assured the legislature.

He revealed the government is considering safeguards and appropriate technical barriers to restrict the import of potentially harmful products.

The Deputy PM admitted that economic restructuring is a long and complex process involving all aspects of life. He warned the process remains in its infancy and needs more time before any judgements can be made.

He confirmed the government will speed up equitising State-owned businesses to increase their operational efficiency. It also plans to usher the non-core affairs divestments of economic groups to completion before 2015, and enhance the management skills, service quality, and competitive capacity of credit organisations.