Vietnam will strive for a GDP growth of around 6.8 percent in 2020, according to Directive 16/CT-TTg on the building of socio-economic development plans and State budget estimates for 2020.

Illustrative image (Source: VNA)

The directive issued recently by the Prime Minister makes clear that the overall goals of development plans and State budget estimates in 2020 are to continue strengthening the macro-economic foundation, controlling inflation and enhancing the internal strength and independence of the national economy.

The plans should also aim for more effective implementation of strategic breakthroughs and economic restructuring in combination with renewing the growth model, while intensifying institutional reform, creating an open and favourable environment for investment, production and business.

Economic growth should be in tandem with social and cultural development, improvement of people’s material and spiritual life, environmental protection, natural disaster prevention and response to climate change.

The directive also outlines eight directions for socio-economic development next year.

Regarding the State budget collection estimates in 2020, the PM requires that collection from taxation and fees should be between 19 – 20 percent of GDP. 

Domestic revenues (excluding those from crude oil, land use fees, lottery, sales of State capital in enterprises, dividend and post-tax profit and revenue-expenditure balance of the State Bank of Vietnam) should increase by at least 10-12 percent compared to estimated revenues in 2019.

Meanwhile, collection from import-export should increase by at least 5-7 percent from estimated collection in 2019.