Vietnam’s gross domestic product (GDP) growth rate is expected to be 6.4-6.8 percent in 2018.
This is a target set in Directive 29/CT-TTg of July 5 on formulation of the socio-economic development plan and state budget estimates for the next year.
As per the gross regional development product (GRDP) indicator, localities will base themselves on GRDP figures in the first half of 2017 and local actual conditions to set appropriate GRDP targets for the next year.
Regarding state budget estimates, it is expected that state budget revenues in 2018 will be nearly 21 percent of GDP. Specifically, domestic revenues, excluding revenues from crude oil, land use levy, dividends and remaining profits of state enterprises, and lottery business, and revenues from import and export activities will increase by at least 12-14 percent and 5-7 percent, respectively, over estimated figures of 2017. However, these rates are calculated without taking into consideration increase or decrease of state budget revenues which might occur due to regulatory changes.
As per state budget expenditures, state agencies and sectors are required to adhere to the principle of thrift practice and waste combat right from the stage of estimating spending needs. New policies will be submitted to competent authorities for promulgation only after funding sources for their implementation are clearly identified.
The Directive stresses that projects and programs to be allocated with state budget funds in 2018 must be those included in the medium-term public investment plan. The only exception is urgent projects prescribed in the Public Investment Law.
Funds for overseas research and survey and procurement of cars and expensive equipment of state agencies will be restricted. Meanwhile, at least 20 percent of the total state budget expenditures will be reserved for education and training, and 2 percent for science and technology.- (VLLF)