VINACHEM

The National Assembly (NA) has set the nation’s gross domestic product (GDP) growth for 2019 at 6.6-6.8 per cent, as stated in the Government’s draft resolution on the nation’s socio-economic development plan.

The GDP growth rate in 2018 is estimated at 6.5-6.7 per cent.

The consumer price index (CPI) growth rate for 2019 is set at 4 per cent and 3 per cent for 2020. Export turnover growth is forecast at 7 to 8 per cent. The percentage of trade deficit over export turnover is below 3 per cent, and socio-economic development capital accounts for a third of the country’s total GDP.

The draft resolution was approved by the NA on Thursday morning.

According to the NA’s Economic Committee Chairman Vũ Hồng Thanh, the GDP growth rate is estimated upon the calculation and review of international organisations and other economies.

The rate is considered a balance between the economic growth expectation and inflation control, providing a foundation for the country to settle its social issues and macroeconomic conditions, Thanh told the NA deputies.

Inflation is forecasted to be weighed down by pressures from rising oil prices, increases of foreign exchange and lending rates, potential risks to the global financial and monetary markets and trade tensions between the biggest economies, he said.

Among internal factors that could affect the inflation rate in 2019 are market-based pricing for electricity, education, healthcare and higher basic salaries, Thanh added.

“The CPI growth rate of 4 per cent set for 2019 is appropriate and should help the Government stabilise macroeconomic conditions, improve control of monetary policies and boost economic growth,” Thanh said.

Other targets approved by the NA include the poor household and district percentages – which are expected to fall 1 to 1.5 per cent and 4 per cent, respectively.

The unemployment rate in urban areas should stay below 4 per cent as the percentage of trained labour reaches 60-62 per cent with certified labour rate of 24-24.5 per cent.

The percentage of the population with health insurance for 2019 is 88.1 per cent, the percentage of industrial and processing zones with collective waste water treatment systems is 89 per cent, and the rate of covered forest area is 41.85 per cent.

Under the draft resolution, the Government must analyse and forecast developments in domestic and international conditions to issue timely policies. Monetary policies must be run proactively and carefully, and be connected with other policies to make sure macroeconomic conditions are stable and inflation is controlled.

The Government must also improve business and investment conditions and increase the competitiveness of Vietnamese companies and products in the world. It must review and improve its policies to benefit key sectors.

In addition, the NA also asked the Government to work on its legal framework to meet the requirements of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement, and to sign and approve the Europe-Việt Nam Free Trade Agreement (EVFTA). — VNA