PM calls for credit and investment expansion to fuel growth

PM calls for credit and investment expansion to fuel growth

Tu Hoang

HANOI – Prime Minister Nguyen Xuan Phuc has urged credit and investment expansion in the final five months of 2017 to help meet the year’s economic growth target.

Addressing the Government’s regular meeting last week, Phuc asked the State Bank of Vietnam to tell commercial banks to cut interest rates to encourage businesses to increase borrowing and thus achieve loan growth of 20% or above this year, but credit quality and macroeconomic stability should be guaranteed.

The Ministry of Planning and Investment was asked to urgently complete a detailed public investment plan for accelerating capital disbursement for public projects and take measures to raise the ratio of investment in the economy to 34-35% of gross domestic product (GDP). Besides, the ministry shall review business conditions and eliminate those deemed as inappropriate.

According to the PM, controlling inflation and attaining the GDP growth target would be tough in the rest of the year. Therefore, ministries, departments and localities should work together and take more drastic measures.

He asked the Ministry of Planning and Investment to give updates to the PM before August 20 so that specific adjustments for each sector can be made in a timely manner.

The Ministry of Transport shall find ways to make the most of Cai Mep-Thi Vai port complex which is operating far below capacity, increase logistics services in the Saigon Port system and reduce costs for import-export goods going through Haiphong Port in the northern city of the same name.

Meanwhile, the Ministry of Construction will review construction certificate application procedures.

The Government encourages localities to build an open dada system and ensure transparency to promote business and investment.

Phuc expected the proportion of agriculture in GDP would increase to 3% and that farm and food exports would reach US$33 billion or higher this year. 

For industry and construction development, inappropriate regulations should be removed to ensure a healthy business environment. Corporations under the Ministries of Industry-Trade and Construction and related ministries and agencies were told to create favorable conditions for power development and find materials that can replace natural sand.  

The provinces and cities playing a crucial role in economic development like HCMC, Dong Nai, Binh Duong, Vung Tau, Hanoi, Vinh Phuc, Thai Nguyen and Bac Ninh should take measures to boost industrial and construction growth.

According to the PM, equitization of State-owned enterprises and divestment of State stakes at businesses have remained slow, so the PM assigned Deputy Prime Minister Vuong Dinh Hue to instruct ministries to deal with violations and hold business leaders accountable.

Ministers and chairmen of provincial and municipal people’s committees will have to make effort to complete their assigned tasks, improve the business environment, reform administrative procedures and regularly inspect agencies to ensure transparency.

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