National Assembly discusses socio-economic situation

Most National Assembly agreed with the government’s report that the economy has made clear signs of recovery with macro-economic stability, improve growth and inflation maintained at a low level. However, besides the achievements, these are still some key tasks needed to be done. One of the most vital issues is to raise the competitiveness of domestic enterprises to prepare for deeper global economic integration. The task is becoming increasingly urgent given the nearing ASEAN Economic Community and the implementation of several free trade agreements.

The high incremental Capital-Output Ratio is also a matter of concern. ICOR is the ratio of investment to growth. The higher the ICOR, the lower the productivity of capital. The high ICOR ratio in Vietnam is due to the investment to poverty reduction and social welfare programs. Although the state budget is limited for next year, NA deputies still suggested that increasing salaries was still critical to meeting social welfare goals.