Vietnam

Nguyen Tan Dung accepts responsibility for government failures


Published

At the end of a month which has seen the role of Prime Minister Nguyen Tan Dung being challenged, the prime minister was forced to report a number of failures in government targets to the opening session of the National Assembly of Vietnam (Quoc hoi) yesterday.

The report, with economic data, as published on the Prime Minister’s website is as follows:

“In the opening session of the 4th sitting of the NA, PM Nguyen Tan Dung delivered a report of the Government on socio-economic situations in 2012 and missions in 2013.

In the report, the Government chief provided many details and figures relating to the socio-economic situations in the first 9 months of 2012, focusing on six fields: (1) reining in inflation and stabilizing macro-economy; (2) economic restructuring; (3) guaranteeing social security and welfare; (4) culture, education, technology and environment protection; (5) administrative reform, anti-corruption and thrift practice; and (6) diplomatic work and national defense.

Inflation control and macro-economic stabilization

CPI increase in 9 months; 5.13%

Mobilization of bank deposits; Up 12.7%

Export; Up 18.9%, valuing US$83.79 billion
Import; Up 6.6%, valuing US$83.76 billion
Trade deficit; about US$1 billion, equivalent to 0.9% of export turnover

Balance of payment surplus; US$8 billion

Budget collection; 67.3% of the estimate
Budget spending; 71.2% of the estimate

Total development investment capital; 29.5% of GDP (in 2011, 34.6%)

9-month production index; Up 4.8%

Agro-forestry and aquaculture production value in 9 months; Up 3.7%
in which:
– Rice production; 43 million tons in 2012 (estimated)
– Rice export; 7 million tons
– Aquaproduct export; US$ 6.5 billion in 2012 (estimated)

Total retail sales in 9 months; Up 17.3%
Tourism revenues; Up over 15% in 2012 (estimated)
Number of international arrivals; up over 8%
Passenger transport volume; up 12.1%

Social security and welfare

Poverty rate; Down 1.76% in 2012 (the plan: 2%)
Job generation in 9 months; 1.13 million
Regular social allowance provided; 2.3 million people

New unemployment insurance buyers; 8.07 million, up 6.6%

Unemployment insurance provided; Over 280,000 laborers
New social insurance buyers; 10.34 million

Health insurance purchase; Reaching nearly 68% (up 5%)

PM Dung also pointed out weaknesses in each and every of these fields and recognized that at least five preset goals – GDP growth rate, development investment capital, job generation, poverty reduction, and forest coverage – have not been fulfilled.

In the report, the Government proposed general targets for 2012, continuing to highlight macroeconomic stability, low inflation and higher growth, with many specific indicators.

– Economic indicators: GDP growth rate: 5.5%. Export turnover increase: about 10%. Trade surplus: 8%. Budget overspending: not over 4.8% of GDP. CPI increase: 8%. Total development investment capital: 30% of GDP.

– Social indicators: Poor households reduced by 2% nationwide and 4% in poor districts. New job generation: 1.6 million, urban unemployment rate: below 4%, trained laborers: 49%. Malnutrition of below-5-year-olds: below 16%. Number of hospital beds: 22 per 10,000 people.

– Environmental indicators: 84% of polluters are punished; 75% of industrial parks and export processing zones have their own standard sewage treatment stations. Forest coverage: 40.7%.

To fulfill the above-mentioned targets, the Government put forth a number of solutions which should be drastically implemented in the time to come.

It is noteworthy that, before concluding the report, PM Nguyen Tan Dung confirmed that he himself, as the Government chief, seriously took the political responsibility to the NA, the Party and people for the Government’s weaknesses and wrongdoings, especially in monitoring and controlling the performance of economic groups and State-owned enterprises (SOEs).

“Some SOEs like Vinashin and Vinalines proved ineffective in their performance, made many mistakes, causing serious losses and consequences in various fields, leading to negative impacts on the State economic sector’s prestige and role,” the PM admitted.

PM Dung emphasized that the whole Cabinet, the PM and each Cabinet member will be strict with themselves, consolidate their solidarity and spare no effort to overcome weaknesses and undertake all assignments for the sake of the country and people.”

Tagged with:

More detailed briefing on the politics and risk of doing business in this country is available to clients and subscribers. If you would like to know more then please contact enquiries@tradebridgeconsultants.com