Prime Minister Nguyen Xuan Phuc urged local businesses to make every effort to restart the national economy in an attempt to achieve GDP growth of over 5% during the course of the year, while chairing a national videoconference with businesses in Hanoi on May 9.

Prime Minister Nguyen Xuan Phuc delivers a speech
at a video conference with businesses

The conference was held with the aim of capitalising on opportunities of the current situation, to overcome challenges, and boost economic recovery moving forward.

The duration of the event was broadcast online through 63 local bridge points, allowing approximately 800,000 firms and over five million enterprises nationwide to follow proceedings. It is hoped that the videoconference will serve to successfully deal with issues of common concern, proposals, and discuss advice given to PM Phuc.

Indeed, during his speech the PM stated that various international organisations believe that the global economy could retract by 3%, making it the deepest recession since the 1930s. Amid this worldwide outlook, the World Bank has recently predicted that the national economy would see a growth rate of 4.9% over the year.

According to the Prime Minister, with many developed countries is suffering from a heavy financial burden, the nation has accumulated resources which mean it is able to maintain favourable growth in the coming years. These predications indicate that the country is not heavily reliant on the world market, whilst showing the great capacity of both the local economy and business community.

The conference aims to take full advantage of opportunities of the current situation,
to overcome challenges, and boost economic recovery moving forward 

In the face of difficulties cause by the novel coronavirus (COVID-19) epidemic, the Politburo, the Secretariat, the Government, and the Prime Minister have adopted a range of policies in recent times aimed at supporting businesses, people, and the national economy.

This has seen PM Phuc set out dual targets in terms of pandemic control and socio-economic development, noting that with the epidemic being successfully brought under control, the important task now is fostering production, boosting business activities, creating jobs, ensuring the livelihoods of citizens, and promoting growth.

Taking this spirit forward, the Government chief outlined the need to place greater emphasis on restarting the Vietnamese economy, striving to achieve this year’s GDP growth rate of 5% and beyond that of the IMF forecast of 2.7%, while attempting to control inflation below 4%. 

As a means of achieving these goals, a major focus should be placed on attracting investment from domestic economic sectors, especially from private investment, attracting greater FDI, boosting exports and public investment, along with encouraging domestic consumption among the population of nearly 100 million, he noted.

Moreover, the cabinet leader emphasised the responsibility that state agencies at all levels have to iron out snags for local enterprises, whilst doing their best for the sake of the nation and for its people. Therefore, ministries and sectors participating in the conference have been asked to devise a range of fresh solutions and ideas relating to the market, value chain connection, labour, taxes, and fees, in an attempt to recover the national economy.

The latest videoconference represents the fourth event of its kind with the PM undertaking annual direct dialogues with companies in the hope of discussing ways to remove barriers, thus paving the way for firms to advance and boost reforms at a variety of levels.

According to the Vietnam Chamber of Commerce and Industry (VCCI), following the first dialogue between the Prime Minister and businesses held in 2016, 45% of issues raised by enterprises were sent by the VCCI to ministries and agencies, with the figure hitting 80% after four years, from 2016 to 2019. 

It is hoped that this year’s conference taking place amid the COVID-19 epidemic recently being brought under control will help to inspire a revolutionary and patriotic spirit among people and businesses, as well as showing the world the great determination that Vietnam has to move forward while embracing the new normal.