Vietnam legislators set 2023 GDP growth target at 6.5%

Vu Hong Thanh, head of National Assembly Economic Committee. Photo courtesy of Young People newspaper.

Vietnam legislators set 2023 GDP growth target at 6.5%

By Nguyen Long

Thu, November 10, 2022 | 5:01 pm GTM+7

The National Assembly has set Vietnam’s economic growth target for 2023 at 6.5%, inflation at 4.5%, and GDP per capita at about $4,400.

The goals were approved Thursday at the ongoing NA sitting in Hanoi.

Prior to the ratification, some NA members argued that the inflation target should be less challenging, like 6-8%, because of the tightening of monetary policies in many countries across the world including the U.S. and global uncertainties.

However, Vu Hong Thanh, head of the NA Economic Committee, said the 4.5% inflation goal meant the government would have to “prioritize macroeconomic stability and inflation curbing.”

The legislative body asked the government to work out policies and measures to ensure the two key tasks.

Thanh said next year’s GDP growth target of 6.5% was based on estimated 8% growth this year, which is high; and with global uncertainties and economic recession risks factored in.

Per Thursday’s NA approval, in terms of monetary policy, the government is required to take measures to increase adaptability and resilience of the financial and banking system in all situations; tightly control inflation and flexibly manage interest rates and exchange rates.

Fiscal policy, meanwhile, has to be focused in order to ensure minimal revenue losses and waste; and to tighten control over potentially risky sectors like real estate, corporate bonds and securities.

The government has also been asked to thoroughly resolve issues with long-delayed projects and complete legal frameworks and mechanisms to manage issues related to virtual assets and cryptocurrencies.

It has also been asked to accelerate the progress of key transport and infrastructure works, urban railway projects, highways and ring roads for which investment policies have already been approved.

The government should remove obstacles and difficulties facing major power projects across the country in order to ensure national energy security, lawmakers said.

National Assembly members also stressed that developing skilled human resources for the country was a vital duty for the government.

The government has put Vietnam’s GDP growth forecast for this year at 8%, higher than its target of 6-6.5%. The figure is higher than the predictions of some international institutions.

On September 27, the World Bank said the country’s economic expansion could hit 7.2% this year, the highest in Southeast Asia. On September 21, the Asian Development Bank put Vietnam’s growth estimation at 6.5% this year on strong economic fundamentals, key to fast recovery. The figure is the highest in Southeast Asia and equals the Philippines’.

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