Public debt safety indicators are controlled within allowable limits.

Updated date: 10/23/2023 5:34:21 PM

According to the Government's report, by the end of 2023, the estimated public debt balance is 39 - 40% of GDP, the government debt balance is 36 - 37% of GDP, the country's foreign debt balance is about 37 - 38% of GDP, lower than the warning threshold prescribed by the National Assembly , contributing to strengthening the national credit rating.

Minister of Planning and Investment Nguyen Chi Dung presented the Mid-term Assessment Report on the implementation of the Socio -Economic Development Plan and the Economic Restructuring Plan for the 2021-2025 period (Photo: THUY NGUYEN)

On the afternoon of October 23, continuing the program of the 6th Session of the 15th National Assembly, Minister of Planning and Investment Nguyen Chi Dung, authorized by the Prime Minister , presented the Mid-term Assessment Report on the implementation of the 5-year Socio-Economic Development Plan 2021 - 2025 and the Economic Restructuring Plan for the period 2021 - 2025.

The economy continues to be a bright spot in the global economic picture.

Assessing the socio-economic development situation since the beginning of the term, the Minister stated that our country has basically steadfastly overcome difficulties and challenges and achieved many important and quite comprehensive results, creating a foundation for socio-economic development, promoting growth, enhancing competitiveness in the medium and long term; continuing to be a bright spot in the global economy.

Some key indicators for the 2021 - 2023 period are expected to have more positive changes compared to the 2016 - 2018 period, such as: the proportion of processing and manufacturing industry in GDP (23.77 - 23.94% compared to 23.37%); the proportion of agricultural labor in the total social labor force (26.7% compared to 37.6%); the proportion of trained labor (68% compared to 58.6%)...

Many prestigious international organizations highly appreciate the results and prospects of the Vietnamese economy, forecasting that our economy will recover quickly in the near future.

Specifically, the scale and potential of the economy are constantly expanding; economic growth is gradually recovering. GDP growth rate in 2021 reached 2.56%, which is considered positive by the world while many economies have negative growth; in 2022 it increased by 8.02%; in 2023 it is estimated to reach over 5%, lower than the set target but still quite high compared to many countries in the world and in the region.

Scene of the meeting on the afternoon of October 23 (Photo: THUY NGUYEN)

Public debt safety indicators and 3-year government debt are controlled below the limit and warning threshold. By the end of 2023, the estimated public debt balance is 39-40% of GDP, government debt balance is 36-37% of GDP, and the country's foreign debt balance is about 37-38% of GDP, lower than the warning threshold prescribed by the National Assembly, contributing to strengthening the national credit rating.

Regarding economic restructuring in the 2021-2025 period, the report clearly stated that after nearly 2 years of implementation, out of 23 indicators with information and data, 10 indicators can be achieved, 13 indicators require great efforts.

Some indicators have positive results such as the on-balance sheet bad debt ratio of the credit institution system by the end of June 2023 at 3.36% (1.69% at the end of 2020, 1.49% in 2021, 2022); total factor productivity (TFP); groups of indicators on bad debt handling and capital safety assurance at credit institutions.

Some indicators on labor productivity growth and business development face many difficulties. Specifically, the labor productivity growth rate in 2021 is 4.6%, in 2022 is 4.8%, and in 2023 is estimated at 3.8 - 4.8%. The number of enterprises by 2023 is estimated at 903 thousand enterprises (the target by 2025 is 1.5 million enterprises).

Referring to the main tasks and solutions until the end of the 2021-2025 term, the Minister said that the Government is determined to continue to firmly and consistently pursue the goals of stabilizing the macro economy, controlling inflation, ensuring major balances; further speeding up the implementation progress and disbursement of public investment capital, especially key transport projects.

At the same time, drastically reform administration, cut administrative procedures, business regulations, improve the investment and business environment; develop safe, healthy, effective, sustainable and integrated markets; create strong changes in economic restructuring associated with growth model innovation.

The next solution is to innovate methods and approaches to effectively implement the 3 National Target Programs; including researching and piloting the decentralization of implementation to the district level; promoting human resource development, especially in the high-tech field (such as chips, semiconductors), focusing on training 50-100 thousand high-quality human resources for the electronic chip manufacturing industry by 2025 and 2030.

At the same time, build and complete a synchronous legal framework to promptly and effectively implement the salary policy reform plan from July 1, 2024; tighten administrative discipline and order; further promote the prevention and fight against corruption, negativity, group interests, practice thrift, and combat waste.

Resolutely complete restructuring of 4 key areas

Reviewing the Government's socio-economic and economic restructuring reports, Chairman of the Economic Committee Vu Hong Thanh said that the economic structure has not changed much; productivity, quality, efficiency and competitiveness are still low, the average labor productivity in the 3 years of 2021 - 2023 increased by 4.36-4.69%, lower than the 6.26% of the 3 years of 2016 - 2018.

The quality of state budget collection is still unsustainable, with excess revenue mainly from land use fees and crude oil. Institutional development and improvement work is still limited, and the debt of detailed regulations on laws and ordinances has not been completely resolved.

In particular, the implementation of the 3 National Target Programs is still very slow. The results of new rural construction are not uniform, not really sustainable, there are still outstanding debts in basic construction; the mechanism for integrating capital sources between the Programs is still very limited, and mobilizing social capital is difficult.

Chairman of the Economic Committee Vu Hong Thanh presented the audit report at the meeting (Photo: THUY NGUYEN)

The Economic Committee recommends that the Government supplement the assessment to clarify the causes, especially the subjective causes, of the expected difficulty in completing 13/27 goals and targets for economic restructuring (accounting for 48.1%), because these are all important goals related to restructuring public service units, labor productivity, development of financial markets, land markets, science and technology, enterprise development, and labor.

According to Mr. Thanh, the restructuring of state-owned enterprises, the progress of equitization and divestment in state-owned enterprises is still slow and has not achieved the set plan, making it difficult to complete the goals according to the Resolution. Therefore, it is recommended that the Government continue to resolutely implement measures to avoid loss of state capital; have a specific plan to use capital obtained from divestment, in which priority is given to important national projects and works to create momentum for development and spillover effects for the economy.

The Economic Committee recommends that in the remaining years of the 2021-2025 term, the Government, all levels and sectors need to closely follow the international economic and financial situation; proactively analyze and forecast developments in international markets to have appropriate proactive response scenarios.

In addition, resolutely deploy appropriate solutions to promote disbursement of public investment capital, the Socio-Economic Recovery and Development Program, 3 National Target Programs, important national projects, key works; speed up the preparation of the North-South high-speed railway project, develop energy infrastructure, digital infrastructure associated with improving internal capacity.

At the same time, firmly ensure national energy security, encourage the development of smart grids, renewable energy and the strong participation of the non-state economic sector. Effectively and substantially restructure the economy according to the key tasks set out in Resolution No. 31, in which resolutely and thoroughly restructure 4 key areas including restructuring public investment, state budget, credit institutions and public service units.

According to VAN TOAN (NDO)

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