Vietnam Govt Pledges to Secure Public Debt, Better Business Environment

Tuan Minh

10:45 07/12/2015

BizLIVE - Vietnam’s Prime Minister Nguyen Tan Dung told foreign diplomats and development partners that the Vietnamese government will strive to keep the country’s public debt within secure limits and further improve the investment climate.

Vietnam Govt Pledges to Secure Public Debt, Better Business Environment

PM Nguyen Tan Dung attends VDPF 2015. (Photo: Trung Kien)

At the annual event Vietnam Development Partnership Forum (VDPF), PM Nguyen Tan Dung said that Vietnam aimed to speed up economic growth to 6.5%-7% in the next five years, compared to 5.9% in the 2011-2015 period, and a 6.55% expansion this year.
The prime minister admitted that Vietnam will face a wide array of challenges in the upcoming years, such as fierce competition when the country deepens its integration into the global economy, low productivity, huge financial needs to develop infrastructure and improve social welfare, and the out-of-date legal framework.
To achieve higher economic growth rates on the background of macro stability in the coming five years, the prime minister outlined five groups of measures:
First, macroeconomic stability needs enhancing. The government will continue to revamp the economy in the fields of public investment, state-owned enterprises, banking and agriculture.
PM Nguyen Tan Dung stated that the government will curb state budget deficit at 4% per year in the 2016-2020 period and ensure public debt stays within the safe level. “I emphasize that Vietnam will safeguard its national financial security and public debt,” he noted.
Second, the Vietnamese government will continue to perfect market economy institutions, by facilitating the establishment and operation of components of a market economy, including the land and mining, capital, labor and science-technology markets, among others.
“Once market economy institutions are in place, we will be able to mobilize resources from 92 million people at home, 4.5 million overseas Vietnamese as well as foreign investors, for socioeconomic development,” PM Nguyen Tan Dung stressed.
He noted that Vietnamese government encouraged the growth of the private economic sector and small- and medium-enterprises.
Third, the Vietnamese government will actively integrate in the global economy. Vietnam has signed 14 free trade agreements with 55 developed countries, including 15 G20 economies.
Fourth, Vietnam will continue beefing up cultural development and promoting social justice and security.
Fifth, the Vietnamese government will elevate national governance and build a state of law, refine the legal framework and guarantee citizens’ legitimate ownership rights.  
The prime minister emphasized that the government will go on with the administrative reform, improve the business environment, regarding especially business establishment, access to land, capital, tax, customs, electricity and investment licensing.
“The Vietnamese government will guarantee political safety and keep social order for local and foreign citizens and businesses operating in the country,” he added.
Formerly known as Consultative Group meeting, VDBF is a high-level policy dialogue between the Vietnamese government and its development partners to discuss important policies to promote Vietnam’s socioeconomic development and improve people’s living standards.
VDPF 2015 took place in the context the Communist Party of Vietnam will hold a congress next month, where changes in the Vietnamese political system will be debated, and the National Assembly, the country’s supreme legislative body, will approve the 2016-2020 socioeconomic plan in March 2016, said Minister of Planning and Investment Bui Quang Vinh in his closing remarks.