The Ministry of Planning and Investment is working on a draft plan on economic restructuring during 2016-20, with a view to firmly stabilizing the macro-economy, curbing inflation at a reasonable rate and creating a fair, low-cost and barrier-free business environment for enterprises.
Under the draft, three pillars of the economic restructuring by 2020 would be ensuring reasonable economic growth and macro-economic stability, boosting the high added-value economic sectors and developing an independent and dynamic economy to ensure the national security and social order and safety.
The draft plan targets to attract investment from at least 150 among 500 leading global multinational corporations by 2020__Photo: Internet
Accordingly, annual inflation would be controlled at 5 percent, the state budget deficit would be reduced to 3.5-4 percent of the Gross Domestic Product (GDP), public debts down to below 62 percent of GDP and foreign-currency reserve equivalent to five months’ import value. The business environment would be improved to be equivalent to that of ASEAN+3 (Singapore, Malaysia and Thailand).
As for the financial sector, by 2020, the draft expects to complete the restructuring of credit institutions, reduce system risks and promote the operation efficiency. The lending interest rate would be reduced to the average level of other developing countries, around 5 percent per year, and about 70 percent of commercial banks would fully implement Basel II.
The draft plan also aims to attract investment from at least 150 among 500 leading global multinational corporations by 2020.
In order to achieve the above targets, the planning work would be renewed and improved to suit international practices and competitive market economy.
Multi-modal transportation would be developed to take advantage of cheaper railway or waterway transportation instead of current expensive road transportation.
Under the draft, the State Bank of Vietnam is expected to be developed into a modern, well-organized and efficiently-operating central bank that can properly perform the function of ensuring price and financial stabilization and other functions suitable to the socialist-oriented market economy mechanism.
The monetary policy would be implemented cautiously and effectively, and closely combined with the fiscal policy for controlling inflation, stabilizing the macro-economy and ensuring rational economic growth.
The draft plan is now available for public comment at www.mpi.gov.vn