Government proposes NA adjust growth targets due to Covid-19

22-May-2020 Intellasia | The Saigon Times | 6:02 AM Print This Post

The preset target of 6.8 percent GDP growth for 2020 will be a tough task for Vietnam to fulfill due to the impact of the coronavirus pandemic, so the government has proposed the National Assembly (NA) reconsider and adjust some targets.

Speaking at the ninth sitting of the 14th National Assembly on May 20, prime minister Nguyen Xuan Phuc noted that Covid-19, the disease caused by the coronavirus, has taken a heavy toll on all sectors.

Apart from the needed adjustment to the gross domestic product (GDP) growth target, it is necessary to adjust the targets for budget revenue and spending, public debt and others, according to the government leader.

The government in its report sent to the NA before the session proposed the target of the GDP growth be revised down to 4.5%, or 2.3 percentage points lower than the target of 6.8 percent previously set by the NA.

If the global economy recovers and the disease is contained, the country will try to achieve a GDP growth target of 5.4%, according to the government.

The government also proposed fixing the consumer price index (CPI) and export revenue growth targets at 4%, inching down 3 points compared with the NA’s present targets. The total State budget collection should be lowered by VND163 trillion against the assigned estimate, while the budget deficit should be 4.75 percent of the GDP, up 1.3 points against the preset target.

The public debt was proposed at 55.5 percent of GDP, edging up 3.2 points from the present target.

Besides this, at the ninth sitting, prime minister Nguyen Xuan Phuc also proposed the NA approve some policies and solutions to address the damage from Covid-19.

Over the first four months of the year, the establishment of new firms fell by 13.3 percent while the number of enterprises temporarily suspending their businesses soared by 33.6%, affecting over five million labourers, with 98 percent of them active in the tourism, aviation and service sectors.

In addition, the government proposed the NA consider suspending minimum wage hikes for public servants, employees at State agencies and the armed forces from July 1 to share the difficulties of workers affected by the pandemic and to replenish capital sources for urgent needs.


Category: Economy, Vietnam

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