PM Phuc points to insufficient simplification of administrative procedures

In his remarks, the government leader said that international organizations highly rated Vietnam’s economic outlook on the back of the positive socio-economic performance in April and May. The Purchasing Managers' Index (PMI), an indicator of economic health for the manufacturing and service sectors, rose to May’s highest level in ASEAN at 53.9 points.

Strong growth was also seen in agricultural production, with the winter-spring crop achieving a paddy output of more than 1.1 million tons and the rice price hike bringing greater profits to farmers. According to a report by the Ministry of Agriculture and Rural Development, rice farmers in many areas were able to earn profits even 30- 50% higher than normal.

With many localities making impressive gains in production value, such as Ho Chi Minh City and Hanoi, some south-eastern provinces and key economic areas are at their best to stimulate economic growth, Phuc said.

There were remarkable improvements in domestic demand as evidenced by the total retail sales of goods and consumer services increasing by 10.1%. The number of international tourists reached more than 6.7 million. The five-month export value rose beyond US$93 billion, bringing a trade surplus of US$3.4 billion. Along with the sharp increase in disbursement of foreign direct investment (FDI), the country had nearly 53,000 newly-established enterprises during the past five months with a total of new and additional registered capital of VND 1.42 trillion.

However, PM Phuc warned of the risks facing the national economy, especially when May’s consumer price index (CPI) expanded by 0.55% over the month previous. This was a strong increase, especially as this year’s key target is to ensure macro-economic stability and keep inflation in check, he noted.

"We have to deliberate overall solutions to control inflation at below 4% according to the National Assembly Resolution. Accordingly, all ministries, in particular the Ministry of Finance, and the Ministry of Industry and Trade should manage themselves so as not to increase electricity prices this year. Medical service prices are only adjusted at an appropriate time with permissible conditions,” the cabinet leader emphasized.

Regarding disbursement of public investment capital, the PM stated that the disbursement rate over the first five months of the year was very low, meeting nearly 29% of the plan, with key economic areas such as Hanoi at 30%, and Ho Chi Minh City at a mere 15%. This was attributable to increasing costs and the slow-paced implementation of projects which dampened economic growth. Therefore, the PM asked all cabinet members to put forward measures to fulfill the disbursement task this year.

Additionally, the PM urged localities, ministries and sectors to promote foreign direct investment (FDI) attraction, accelerate the growth of industrial production value, especially in the manufacturing industry, forge ahead with improvements to the business environment by streamlining administrative procedures, and ensure social order and security towards fulfilling all of the socio-economic targets set for this year.