Addressing a regular Cabinet meeting held in Hanoi on May 5, Prime Minister Nguyen Xuan Phuc stressed the urgent need to revitalise the economy which has been badly affected by the effects of the novel coronavirus (COVID-19) and to keep it on a positive growth trajectory.

Prime Minister Nguyen Xuan Phuc says the economic growth must not be
lower than the 2.7% forecst by the IMF (Photo:VGP) 

“With the disease being brought under control, the primary task now is boosting production and business services to maintain growth, while focusing on job generation to ensure social security”, PM Phuc stated during the meeting. 

The PM noted that many powerful global economies have recorded negative growth over the past four months as a result of the COVID-19 pandemic. Evidence for this can be seen in a recently released report by the International Monetary Fund (IMF) which outlines how global GDP growth is projected to be at minus 3% if the COVID-19 pandemic reaches its peak in the second quarter of the year and then subsequently subsides during the year’s third and fourth quarters.

“We must fulfil the dual goal of disease control and economic development as a means of ensuring that necessary economic growth targets are met,” PM Phuc said.

He cited the IMF’s forecast of the nation enjoying 2.7% GDP growth for the year and said the target must not be lowered, regardless of current circumstances.

“The country’s growth must not be low, because only when the set target is maintained, will we address issues such as job generation, poverty reduction, and social security,” the PM stressed, adding that efforts must be simultaneously made to keep the inflation rate at less than 4%.

PM Nguyen Xuan Phuc chairs a regular Cabinet meeting for April to review
socio-economic development in April and the first four months of the year

He called for a range of solutions to be introduced aimed at helping a number of key economic sectors such as industry, tourism, hotels, catering, and transportation services in order to help them regain their momentum in the post-COVID period. 

In addition, the government leader proposed that cabinet members consider adjusting some of the year’s targets if necessary and submit them to the Political Bureau, Party Central Committee, and National Assembly for consideration in the near future.

He also requested that ministries and localities strive to iron out snags in an effort to ensure public investment worth VND700 trillion which has been allocated for this year be disbursed in an effective manner.