70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
NA approves 6.5-7% GDP growth target for next five years
Ngoc Thuy 20:43, 2021/07/27
Manufacturing and processing continue to be key driving forces for the growth, making up 25% of the GDP.

Vietnamese policymakers set a GDP growth target of 6.5-7% for the next five years, marking a GDP per capita of US$4,700-5,000 by 2025.

This is one of the key economic indicators of the Government’s five-year socio-economic plan for the 2021-2025 period, which was approved by the National Assembly (NA) with an endorsement of 475 or 95.59% deputies present on July 27.

 Overview of the NA hearing. Source: quochoi.vn

Among key economic indicators, Vietnam expects to keep an average GDP growth of 6.5-7% for the period, which would translate into a GDP per capita of US$4,700-5,000 by 2025.

Manufacturing and processing, a key driving force for growth, is set to make up 25% of the GDP, and the digital economy would represent 20%.

The plan also targets an average productivity growth of 6.5% per year and a budget deficit of 3.7% of the GDP for the five-year period.

Chairman of the NA’s Committee for Economic Affairs Vu Hong Thanh noted despite severe impacts from natural disasters and diseases, especially the Covid-19 pandemic, the Vietnamese economy has expanded significantly in both scale and competitiveness.

 Chairman of the NA’s Committee for Economic Affairs Vu Hong Thanh.

“A quick recovery from the pandemic is a top priority for the government in the first year of the five-year term, which is expected to lay the foundation for further breakthroughs in subsequent years,” Thanh said.

Thanh stressed the necessity for Vietnam to pursue a universal vaccination strategy to realize the goal of achieving herd immunity by late 2021 and early 2022.

Allocating $125 billion for public investment

At a hearing on the same day, Minister of Planning and Investment Nguyen Chi Dung said the government targets to allocate VND2,870 trillion ($125 billion) for public investment in the 2021-2025 period.

 Minister of Planning and Investment Nguyen Chi Dung.

“Such amount would be used for around 5,000 public projects, less than half of the number in the last five years,” he said, noting the average funding amount for each project is estimated at VND210 billion ($9.12 million), a 2.4-fold increase against the 2016-2020 period.

According to Dung, the main goal of the public investment plan is to complete large-scale projects of national priority to form a comprehensive socio-economic infrastructure system that would help Vietnam better adapt to climate change and embark on the digital transformation process.

 Deputy Duong Minh Anh from Hanoi.

Discussing the plan, Deputy Duong Minh Anh from Hanoi said only 1.12% of the public funds set to be allocated for culture, information, and 2.52% for education and vocational training are inadequate.

“Culture should be seen as a component of the economy, in this regard, investment in culture would not only preserve traditional cultural values but also generate steady income for localities,” Anh said.

Deputy Nguyen Tuan Anh from Long An province also called for a greater amount for science and technology development, instead of the current 2% rate.

“In light of the current Covid-19 outbreak and future pandemics, Vietnam should focus on developing solutions against dangerous diseases, with the immediate tasks being vaccine development against Covid-19,” Anh said.

 Deputy Vu Thi Luu Mai from Hanoi.

“A national research center for vaccine development should be considered as a long-term plan,” he continued.

On solutions to improve the efficiency of public projects, Deputy Tran Van Tien from Vinh Phuc Province said it is essential for Vietnam to perfect a legal framework in public investment and promote the public-private partnership (PPP) model.

Deputy Vu Thi Luu Mai from Hanoi called for greater responsibilities of government agencies in managing state budgets in the interests of the nation and people.

As of June 23, the disbursement rate of public investment in Hanoi stood at 19.27% of the plan, the city, however, remains firm on the goal of fully disbursing the target amount for 2021. 
RELATED NEWS
TAG: Vietnam socio-economic plan covid-19 state budget Public investment GDP
Other news
16:01, 2024/03/28
FDI in Vietnam on the rise in Q1
Singapore remains the top investor with a total investment capital of over $2.5 billion, up more than 51% from the same period last year.
04:55, 2024/03/27
Vietnam takes strong actions to attract semiconductor investment
Over 300 international businesses and 600 delegates attended the Vietnam Global Manufacturing 2024.
20:40, 2024/03/26
Vietnam's favorable factors hold promise for real estate growth
According to Savills, foreign investors are increasing their interest in retail and hotels and traditional segments such as residential and offices.
20:14, 2024/03/26
US urged to recognize Vietnam as a market economy
The US expresses its strong support for Vietnam's development in high-tech sectors, energy transition, climate change adaptation, and dealing with the legacy of war.
21:43, 2024/03/25
MICE tourism: Vietnam's lucrative “golden market” unveiled
Vietnam's MICE (Meetings, Incentives, Conferences, Exhibitions) tourism has been undergoing a qualitative and quantitative transformation in recent years, according to experts in the field.
18:57, 2024/03/23
Vietnamese data center market to hit $1.26 billion by 2030
A double-digit growth rate (around 11%) is forecast for the Vietnamese data center market until 2030.