Economy in last six months still has risks and challenges

Photo: Internet

A report on evaluation of the performance of socio-economic development plan in the first six months of the year and solutions for the implementation of the socio-economic development plan in the last six months of the year at the 57th meeting of the Standing Committee National Assembly, Minister Nguyen Chi Dung said the macro economy and major balances of the economy continued to be maintained, inflation was under control, while the monetary and foreign exchange markets were stable and credit structure shifted in a positive direction.

State budget revenue was estimated at 55.5% of the estimate, up 10.9% year-on-year. State budget expenditure was estimated at 43% of the estimate and disbursement of public investment capital in the first six months of the year was estimated at 34.15% of the plan

Nguyen Chi Dung said besides the results, there are some shortcomings such as the GDP growth rate of the first quarter and the forecast for the first six months of the year has not hitthe target. Import and export still depend on a few markets, exports of the FDI sector still accounts high rate (74.8%).

The trade balance tends to tilt toward imports. Financial markets, real estate, securities and gold markets also have potential risks.

By the end of May, 15.6% of the public investment plan capital from the central budget has not been allocated by ministries, central agencies and localities due to waiting for approval fromthe medium-term public investment plan for 2021-2025.

Forecasting the situation in the last six months of 2021, the Minister of Planning and Investment said the economy still has many risk factors and challenges. The internal capacity of the economy is low and the economy still depends on the foreign-invested sector, inflation is likely to expand.

To strive to achieve the goals assigned by the National Assembly, it is necessary to continue to quickly change thinking, awareness and methods of administration in direction of sticking the reality, firmly grasping the situation to make timely, accurate and efficient decisions;

At the same time, to speed up support for digital transformation for Vietnamese businesses in all fields, to build a practical effective, targeted digital economy and digital society.

Strengthen measures to tighten financial - State budget discipline, accelerate disbursement of public investment capital. In addition, it is necessary to grasp the situation to revise solution to attract FDI; to minimise recurrent expenses; combat negativity and wastefulness in state budget revenues and expenditures; to strictly handle violations; to step up budget collection in all provinces and cities; to promote disbursement of public investment capital and remove obstacles on policies for public investment, construction, compensation and site clearance.

It is also important to maintain macroeconomic stability; control inflation, ensure major balances of the economy; close coordination between fiscal policy, monetary policy and other macro policies; timely propose solutions to curb inflation; implement measures to handle bad debts, and control and limit newly arising bad debts.