Government unveils action plan to improve economic competitiveness

The government has announced an action plan to implement the Party Central Committee’s resolution on enhancing the quality of growth, labour productivity and economic competitiveness.

Photo for Illustration (Pho to: Thai Thien).

Under the plan, the government aims to maintain economic stability, keep annual inflation under 5% and gradually reduce the spending deficit to below 3.5% by 2020.

Public debt during the 2016-2020 period is not allowed to reach 65%, which is to be brought down to 60% in 2030, while the ratio of bad debt is targeted at below 3% by 2020.

The government also aims to increase the size of the stock market to 70% of GDP in 2020, divest all State stakes in enterprises where it is unnecessary for the government to hold more than half of capital.

In order to achieve these targets, the government will endeavour to streamline economic management, push through the equitisation of State-owned enterprises and reform the financial market and public services.

The government will also take action to build a clean and high-tech agricultural sector and restructure key industries in a more substantive manner.

Under the action plan, the role of the private sector will be promoted with a wide range of supportive policies.

The Ministry of Planning and Investment has been tasked with formulating the Law on Support for Small and Medium Enterprises, while other ministries and local authorities have been asked to step up administrative reforms to facilitate business activities.

(Source: NDO)