Vietnamese Prime Minister Nguyen Tan Dung has highlighted at a recent conference that Vietnam will stimulate investments as part of government efforts to achieve GDP growth rate of 6.5 per cent to avert recession triggered by the global crisis next year.
“Top priorities of the government next year are curbing inflation and preventing economic slowdown,” Mr Dung emphasized, referring IMF’s forecast on the global recession with GDP growth predicted at 3.7 per cent, or even lower at 2.2 per cent, which will lead to recession of Vietnam’s economy.
Exports which account for 60 per cent of Vietnam’s GDP value are being strongly hurt by the crisis. Foreign investments attraction and disbursements, hospitality development, overseas remittances will be also suffering, Dung noted.
To achieve the reasonable growth, prevent impacts of the global crisis, Mr Dung said the government will loosen the monetary policies but under tight control. Referring to fiscal policies, Mr Dung said the government will focus on supporting local businesses, particularly SMEs, extend loans or break tax.
The government will increase investments into infrastructure, production via BOT, BT, BTO modes, Mr Dung added.
Minister of Planning and Investment, Vo Hong Phuc said that the government plans to invest VND112 trillion (US$6.78 billion) next year, VND6 trillion lower than 2008, and the government will use government bonds to offset.
Mr Phuc said that we [Vietnam] will consider further cutting benchmark interest rates after it recently cut the base rates to 11 per cent, pushing lending rates down to 16.5 per cent.
Vietnam targets to disburse US$11 billion and US$12 billion out of US$100 billion registered FDI investments next year, Phuc said.
This year, Vietnam is set to invest VND580 trillion, accounting for 39 per cent of the GDP value this year, up 11.2 per cent on year, Phuc said. (Vietnam Economic Times, Investment)
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