Ten of the 14 economic targets by the National Assembly last year weresurpassed. However, there are concerns about the positive results. ThoiBao Kinh Te (Economic Times) Newspaper talked to Mai Xuan Hung, DeputyChairman of the NA's Economic Committee.
Q: In its sessionopening on May 20, the NA will review the socio-economic situation for2014. In fact, the socio-economic situation is better than in the reportdelivered by the Government in the last NA session last October. Do youagree?
A: In the last session, the Government reported the NA'simplementation of socio-economic development in 2014. After reviewingit, the NA noticed that many targets did better than revealed in thereport. Macro-economic balances were more stable.
GDP was estimated to have increased by 5.8 percent. But in fact, theindex reached 5.98 percent. This compares with 5.42 percent and 5.25percent in 2013 and 2012. The index of industrial production rose by 7.6percent in comparison with 5.9 percent in 2013.
Agricultural, forestry and fisheries also produced higher growth rates than in recent years.
The total budget revenue reached 863.52 trillion VND (39.6 billionUSD), an increase of 17.2 trillion VND over the amount reported to theNA.
Consumption price index (CPI) has decreaseddramatically. The CPI in 2013 rose by 6.04 percent, the lowest riseduring in the last 10 years. But in 2014, the index was up by 1.84percent, much lower than the NA's target of 4.5-4.6 percent.
The year 2014 was the third year with a trade surplus. Exports reached1.2 billion USD, of which industrial products made up the biggestshare.
Clearly, it is a nicer picture and a positive signal. However, behind the figures, there are many concerns.
The CPI is an example. There is a big difference in the estimate andreal result. CPI can dramatically affect plans for investment andbusiness, therefore it is necessary to comprehensively evaluate theforecast of CPI.
Besides, production and businessactivities have been facing many obstacles. In 2014, the number ofenterprises which stopped operation and were dissolved was 67,832 ascompared to 60,737 in 2013.
According to theMinistry of Finance, the number of enterprises that paid corporateincome tax reached 50 per cent in recent years.
And the equitisation process for State-owned companies has been slow.
Q: Foreign direct investment (FDI) has made a significant contributionto the GDP growth of 2014. Do you think we should be happy with this?
A: FDI has been increasing and making a greatcontribution to economic development. It has accounted for 65-67 percentof the total export turnover. Samsung Vietnam contributed 10 billionUSD in trade surplus in 2014 and 2013.
The FDI sector has helped increase foreign revenue to the budget and contributes to macro-economic stability.
However, the FDI sector has not helped improve high technology.Besides, there is a concern that if the FDI sources are withdrawn fromthe market, this would badly affect to the economy.
Q: What is there in the economic situation that needs attention?
A: After three constant years of trade surplus, the trade deficit hasreturned in the first fourth months this year. The trade deficit in thedomestically-economic sector has reached 5.7 billion USD against 3.8billion USD in the same period last year. Meanwhile, the FDI sector(including crude oil) has reached the trade surplus of 2.7 billion USDas compared to 5.8 billion USD of the same period of 2014.
Exports seemed to slow down by 6.4 percent compared to the target of 10 percent.
Exports from the domestic economic sector have fallen by 5.1 per centwhile exports of FDI products have increased by 12.9 percent in thefirst quarter this year.
The export turnover of thekey products of agro-forestry and fisheries, and fuel and minerals fromdomestically-economic sector has decreased by 15.8 percent and 37.2percent, respectively.
It is necessary to set up measures to tackle the issue.
Q: How do you evaluate the Government's efforts to improve the investment and business environment?
A: Business conditions are still obstacles stopping enterprisesjoining the market. The procedures are still complicated and regulationsare overlapped. Doing business is regulated by 900 pages of documents.
In 2014, there were 125 Government decrees, 75 decisionsby the Prime Minister, 496 circulars and other 3,930 documents.Therefore, implementation of laws passed by the NA has been slowed downby issuing instruction documents.-VNA
Q: In its sessionopening on May 20, the NA will review the socio-economic situation for2014. In fact, the socio-economic situation is better than in the reportdelivered by the Government in the last NA session last October. Do youagree?
A: In the last session, the Government reported the NA'simplementation of socio-economic development in 2014. After reviewingit, the NA noticed that many targets did better than revealed in thereport. Macro-economic balances were more stable.
GDP was estimated to have increased by 5.8 percent. But in fact, theindex reached 5.98 percent. This compares with 5.42 percent and 5.25percent in 2013 and 2012. The index of industrial production rose by 7.6percent in comparison with 5.9 percent in 2013.
Agricultural, forestry and fisheries also produced higher growth rates than in recent years.
The total budget revenue reached 863.52 trillion VND (39.6 billionUSD), an increase of 17.2 trillion VND over the amount reported to theNA.
Consumption price index (CPI) has decreaseddramatically. The CPI in 2013 rose by 6.04 percent, the lowest riseduring in the last 10 years. But in 2014, the index was up by 1.84percent, much lower than the NA's target of 4.5-4.6 percent.
The year 2014 was the third year with a trade surplus. Exports reached1.2 billion USD, of which industrial products made up the biggestshare.
Clearly, it is a nicer picture and a positive signal. However, behind the figures, there are many concerns.
The CPI is an example. There is a big difference in the estimate andreal result. CPI can dramatically affect plans for investment andbusiness, therefore it is necessary to comprehensively evaluate theforecast of CPI.
Besides, production and businessactivities have been facing many obstacles. In 2014, the number ofenterprises which stopped operation and were dissolved was 67,832 ascompared to 60,737 in 2013.
According to theMinistry of Finance, the number of enterprises that paid corporateincome tax reached 50 per cent in recent years.
And the equitisation process for State-owned companies has been slow.
Q: Foreign direct investment (FDI) has made a significant contributionto the GDP growth of 2014. Do you think we should be happy with this?
A: FDI has been increasing and making a greatcontribution to economic development. It has accounted for 65-67 percentof the total export turnover. Samsung Vietnam contributed 10 billionUSD in trade surplus in 2014 and 2013.
The FDI sector has helped increase foreign revenue to the budget and contributes to macro-economic stability.
However, the FDI sector has not helped improve high technology.Besides, there is a concern that if the FDI sources are withdrawn fromthe market, this would badly affect to the economy.
Q: What is there in the economic situation that needs attention?
A: After three constant years of trade surplus, the trade deficit hasreturned in the first fourth months this year. The trade deficit in thedomestically-economic sector has reached 5.7 billion USD against 3.8billion USD in the same period last year. Meanwhile, the FDI sector(including crude oil) has reached the trade surplus of 2.7 billion USDas compared to 5.8 billion USD of the same period of 2014.
Exports seemed to slow down by 6.4 percent compared to the target of 10 percent.
Exports from the domestic economic sector have fallen by 5.1 per centwhile exports of FDI products have increased by 12.9 percent in thefirst quarter this year.
The export turnover of thekey products of agro-forestry and fisheries, and fuel and minerals fromdomestically-economic sector has decreased by 15.8 percent and 37.2percent, respectively.
It is necessary to set up measures to tackle the issue.
Q: How do you evaluate the Government's efforts to improve the investment and business environment?
A: Business conditions are still obstacles stopping enterprisesjoining the market. The procedures are still complicated and regulationsare overlapped. Doing business is regulated by 900 pages of documents.
In 2014, there were 125 Government decrees, 75 decisionsby the Prime Minister, 496 circulars and other 3,930 documents.Therefore, implementation of laws passed by the NA has been slowed downby issuing instruction documents.-VNA
