Government discusses socio-economic development

Leaders of 63 provinces and cities across the country participated in the online meeting. According to Ministry of Planning and Investment, CPI this month continued its low rise of 0.35% from last month. This underlined the country’s continued stable economic growth.  2^ndquarter GDP was estimated to increase by 6.44% compared to the same period last year. This offers signs of fast economic growth.

However, agro-forestry and fisheries continued to experience low growth. According to Ministry of Agriculture and Rural Development, the agriculture sector is facing two main challenges: sluggish market demand and the current drought. To achieve the targeted GDP growth, the agriculture sector needs to contribute 4.7 billion USD more.

The manufacturing and construction sectors are recovering, with estimated 10% growth. Total export turnover reached 78 billion USD, equivalent of 9% growth.

The Ministry of Planning and Investment also suggested that to achieve the targeted GDP growth of 6.2%, the total production of oil and gas needs to increase 400,000 tonnes.

Prime Minister Nguyen Tan Dung said: "Based on the result of the economics during the first six months, we have evidence to say that we can achieve the targeted growth. What matters is how far we can push. The World Bank forecast that Vietnam’s GDP can reach 3% in 2015. Other opinions said we can reach 2.8%".

Prime Minister Dung also emphasised the importance to maintain a trade balance. During the first 6 months, import turnover reached 4 billion USD. This could create pressure on the exchange rate. Tourism is also an area that can be developed further. The prime minister specifically asked ministries and localities to promote the application of information technology in civil service reforms, as well as the implementation of e-government.

"Although we have achieved the initial success for our target growth, we still have some weaknesses in our administrative procedures. We are still slow in providing instructions and circulars that guide our new laws. We haven’t met the deadline for 12 decrees and 43 circulars. So we need to work on this" - Prime Minister Dung added.

Prime Minister Dung also required the State Bank of Vietnam to tighten inspection of the real estate market to prevent a possible bubble. The health sector also needs to improve the current quality of treatment services. The government will continue discussions this afternoon.