Capital eyes 7.4-7.6% economic growth in 2019

25/01/2019

VGP - The Ha Noi People’s Committee has recently set socio-economic development norms including 7.4-7.6% gross regional domestic product and 7.5-8% export growth.

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Chairman of the municipal People’s Committee Nguyen Duc Chung passed an action program No 12/Ctr-UBND on the socio-economic development and State budget estimation in 2019.

The city set 22 targets for socio-economic development in 2019, focusing on State budget restructuring, improvement of its investment and business environment and promotion of the innovation and startup ecosystem.

According to the program, this year is a turning point to complete the five-year plan for 2016-2020. This has great importance in the context of complicated and unpredictable developments in the region and the world.

Ha Noi’s exports may be affected by protectionist trade and exchange rate policies by some countries, especially the Chinese renminbi could be deeply devalued due to the US-China trade war.

Foreign capital inflows into the city may also be impinged by the adjustment of US tax policy. Besides, unpredictable movements of global oil prices will significantly affect the prices of domestic commodities.

The report also said the 10-year cycle of economic crises, though not expected now, should be regularly monitored to ensure a timely response. The fast-moving Fourth Industrial Revolution (Industry 4.0) brings both opportunities and challenges.

In the country, productivity, efficiency and competitiveness of the economy are not high which may create disadvantages for domestic enterprises competing with foreign partners.

However, besides challenges, the domestic economy is expected to maintain its high growth while Viet Nam’s participation in new-generation trade agreements such as the CPTPP and EU-Viet Nam Free Trade Agreement (EVFTA) will be an important factor to promote the country’s trade and investment.

The program focuses on nine tasks and solutions. Among them is the priority to improve the quality of the city’s investment and business environment, encourage and promote innovation and startups will also be more practical.

Enterprises in the city will be developed in both quantity and quality.

The city will continue its economic restructuring in association with a changing growth model and improving productivity, efficiency and competitiveness.

The program emphasizes the task of restructuring the State budget, focusing on efficient tax collection, fight revenue losses, especially having measures to collect tax arrears, detect and handle price transfer actions, and closely monitor movements on the forex market to ensure the implementation of business and import-export plans./.