Facing up to a long demanding road

November 10, 2012 | 14:00
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National Assembly deputy and National Financial Supervisory Commission chairman Vu Viet Ngoan shines further light on major social economic development targets in 2013.

The year 2013 is an important transitional year in handling the  five-year 2011-2015 development plan. Would an estimated modest GDP growth of 5.5 per cent in 2013 put pressure on development in the last two years?

That is inevitable. We should look straight to the fact that GDP growth in this five year period could hardly reach proposed level of 7-7.5 per cent per year.

The global economy is unlikely to resume growth in the near term, as current economic woes need more time and resources to be tackled, so it is almost impossible for us to reach the proposed [7-7.5 per cent] GDP growth as stated above.

This should be acknowledged to help us remain consistent with the target of strengthening macroeconomic stability in 2013, laying firm fundaments for development in the ensuing years.

Many experts assumed it would be hard for firms to embrace production and business expansion with such modest estimated GDP growth. How to curb the increasing unemployment?

Every economic policy has two sides. Speeding up GDP growth when actual resources remain limited will fuel consumer price index (CPI) growth pace, thus worsening people’s living standards. Tackling unemployment woes next year will be an arduous task, but it is inevitable when we pursue the macroeconomic stability target.

The government also needs to come up with solution packages to soften CPI growth to ensure social well-being and keep economic growth at reasonable level. In my view, proposed 8 per cent CPI growth for 2013 is still high against current tolerance of people and businesses.

How is the economic restructuring target reflected in 2013’s socio-economic development plan?

The overall targets in 2013 socio-economic development plan are fostering macroeconomic stability, slowing down inflation and facilitating economic growth compared to 2012. Ramping up efforts in carrying three strategic breakthroughs  -perfecting the socialist-oriented market economy, quickly developing human resources and building infrastructure - parallel to restructuring the economy and transforming growth model is crucial.

What is your comment on the National Assembly’s recent plan to distribute VND60 trillion ($2.85 billion) in project bonds for implementation of two major transport projects?

This is a smart move. Issuing project bonds and diversifying investment models like BOT, BT or PPP for expanding National Highways 1A and 14 not only tackle one of major transport bottlenecks, but also support local contractors to boost capacity when taking part in big transport infrastructure projects.

Besides, large capital amounts being pumped into the economy will fuel aggregate supply and revive construction which has contracted in the past two years.

The sixth Party Central Committee plenum of the 11th Party Congress just passed a series of important resolutions including those on continued reforms of land laws and policies. What  impacts will they have?

Central Party Committee resolutions read that in the forthcoming time it is important to continue reforming and perfecting the land laws and policies focusing on issues like land use planning, land allocations and land leasing, reclamation, compensation, support and particularly land rates. Existing regulations on land have created huge hindrances and triggered complex disputes.

In reality, fixing land rates based on socialist-oriented market rules is a necessity. In the spirit of new resolutions if the amended Land Law was passed at this NA session, it would ameliorate usage functions of this special resource to help warming up the property and construction market.

By Anh Minh


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