Government's economic stimulation policies prove effective: Minister

ABO/NDO– The impressive economic growth in the first seven months of this year reflects the efficiency of the policies that have been applied recently, stated Minister of Planning and Investment Nguyen Chi Dung at the meeting between the Prime Minister and businesses that opened in Hanoi on August 11.

The minister said that international organisations have shown optimism about the Vietnamese economy, rating the country’s long-term credit as "stable" and "positive". Many economists held that the Vietnamese economic resilience is relatively good currently, he added.

The official cited a recent survey as showing that in the second quarter of this year, 70-80% of total businesses highly valued the effectiveness of the Government’s support to businesses amid the COVID-19 pandemic, especially those in taxation.

An overview of the meeting (Photo: VNA).

As of the end of July, the country had 871,000 companies, up nearly 13% over 2019. In July alone, more than 130,000 firms joined and re-joined the market, a rise of 26.8% year on year, he said, adding that investment poured to the economy in the first seven months topped 3.3 quadrillion VND (141.11 billion USD), a year-on-year increase of 37%.

The market for a number of sectors, especially the domestic market, has recovered by 75-85% compared to the period before the pandemic broke out.

In the January-July period, the country’s export revenue was estimated at 216.35 billion USD, a rise of 16.1% year on year, with 30 products having export revenue of more than 1 billion USD.

Minister Dung underlined that investors and businesses’ confidence has continued to be reinforced, with nearly 92% of the enterprises expecting stable and expanded operations in the third quarter, and 85% of manufacturing-processing companies forecasting stable and better business in the same period of time.

However, the official pointed to a number of shortcomings of the Vietnamese business community, including the small scale of the majority of businesses (98%), limited science-technology capacity, and their modest engagement in the global value chain.

He highlighted a number of reasons behind the situation, especially those in legal documents and institution, which were continuously reported during previous meetings between the PM and the business community but have yet to receive satisfactory solutions.

(Source: NDO)