National Assembly to answer economic questions

Deputy Prime Minister Nguyen Xuan Phuc told the session in a 16-page government report on Vietnam’s socio-economic situation that the government’s upcoming core task would be “removing enterprises’ difficulties to push up production and business. Meanwhile, the consistent policy of curbing inflation and stabilising the macroeconomy will continue to be implemented, in order to create a basis for sustainable growth.”

“There have been signals of economic growth declines,” Phuc said.

The government reported that Vietnam’s economic growth rate was only 4 per cent in this year’s first quarter, far lower than the same periods of 2011 (5.57 per cent) and 2010 (5.84 per cent).

The Ministry of Planning and Investment reported that during this year’s first four months, nearly 17,740 enterprises went bankrupt and stopped operations, up 9.5 per cent against the same period last year. Many of them are in wholesale and retail (5,300 enterprises), construction (3,100), manufacturing and processing (2,900) and transport (1,000).

“The government’s tightened fiscal and monetary policies have contributed to taming inflation and stabilising the macroeconomy. But, they have driven enterprises into difficulties, especially small- and medium-sized ones,” Phuc said.

Nguyen Sinh Hung, chairman of the National Assembly, said: “The deflation and low economic growth rate signals, along with environmental and social problems are causing difficulties for the country to reach its important socio-economic targets for 2012.”

The government has targeted a 6-6.5 per cent economic growth rate this year, with inflation at 8-9 per cent.

National Assembly deputies also agreed that the third session, to be close on June 21, would adopt a record 13 draft laws and seven resolutions, and comment on six other bills.

The 13 draft laws to be approved will be Deposit Insurance, Money Laundering Prevention, Higher Education, Tobacco Harm Prevention, the Labour Code (amended), Pricing, Trade Union Law (amended), Judicial Evaluation, Legal Dissemination and Education, Handling of Administrative Infringement, Advertisement, Water Resources (amended) and Maritime of Vietnam.

The seven resolutions to be passed during the 25-day session include a resolution on ratification of the 2010 state budget settlement, a resolution on special oversight of the implementation of law on agriculture, farmers and rural areas, a resolution to reform the quality of National Assembly activities. Also, there will be resolutions on the addition of four projects to the list of government bond-funded projects in 2011-2015, and five sub-projects of Ninh Thuan’s coastal road and four sub-projects managed by the Ministry of Transport.

There will also be a resolution on tax solutions to handle difficulties for entrepreneurs and private firms in 2012 and a resolution on law and ordinance-making programme of the National Assembly in 2013.

The legislative body will also discuss reports including implementation of socio-economic development plan and state budget in 2011, the implementation of socio-economic development plan and state budget in the first months of 2012 and report on the National Assembly's finance and budget committee on solution package of supporting enterprises.