The national economy has ridden out the difficult times and begun showing the green shoots of recovery, Deputy Prime Minister Nguyen Xuan Phuc told the National Assembly on June 15.
Phuc made the confirmation, citing major positive indexes of the national economy recorded in recent months following a long period of stagnant business production and a low purchasing power as a consequence of the global economic downturn.
He quoted statistics saying the national economy is forecast to secure a GDP growth rate of 4.5 percent in the second quarter, 0.5 percent higher than the first quarter.
The agricultural production value is predicted to grow at 3.6 percent, industrial value at 4.4 percent, and total retail and service revenue at 20.3 percent.
Notably, Phuc said, inflation has been brought under control, with a six-month rate expected to hit a three-year record low of around 3 percent.
The banking system achieved ‘positive’ credit growth in May after months of operating at the ‘negative’ level.
In addition, six-month exports are likely to increase 20.8 percent year on year, and imports will fall sharply to account for just 2.9 percent of total exports, a relatively low figure compared to the corresponding period in the previous years.
Meanwhile, the economy’s trade balance has improved and foreign currency reserves have increased considerably.
Phuc voiced the government’s resolve to stabilise the macroeconomy, rein in inflation and boost business production, aiming to achieve a GDP growth rate of 6 percent for 2012, and keep inflation at 7-8 percent.
To lend a helping hand to businesses in difficulty, the government has introduced consistent and flexible financial and monetary policies, including gradually lowering bank interest rates, raising the credit growth at a reasonable rate, dealing with bad debts, seeking outlets for businesses, reducing inventories, stimulating the aggregate demand of the economy, and proposing tax cuts and exemptions.
Businesses have also taken great pains to ride out the economic slowdown by restructuring investments, reshuffling organisation, enhancing the competitive capacity, and expanding markets.
In the first five months of 2012, nearly 22,000 businesses were dissolved, or suspended operations, a year-on-year increase of 9.5 percent. However, the number of these businesses in May fell 10 percent compared to the April figure, and the number of newly-established businesses increased substantially.
The Deputy PM assured that to support businesses and stimulate the economy, the government has been implementing a host of measures aimed at improving the efficiency of public investments, speeding up the disbursement and tightening the management of capital sources, and hastening the restructuring of the banking system.
Another important task is to deal with bad debts at commercial banks and businesses, making it easier for businesses in difficulty to access low-interest bank loans.
At the same time, the banking system is projected to achieve monthly credit growth of 2 percent in the second half of this year to secure the rate of 12-13 percent by the year’s end.
Phuc also said that the Government will introduce medium- and long-term policies to transform the economy into the one with steady growth and high competitiveness, restructure and increase social investments, develop human resources, accelerate the equitisation of State-owned enterprises, further improve the investment and business environment, and strengthen international integration.