GDP growth forecast to reach 5.5 percent in 2009

The growth of Vietnam’s GDP in 2009 is predicted to reach 5-5.5 percent instead of the 6.5 percent stated in the country’s socio-economic development plan earlier this year.

The figure was released in a report from the Ministry of Planning and Investment (MPI) at the 7 th plenary session of the National Assembly’s Economic Committee in Hanoi on May 7.

The agro-forestry-fisheries sector is expected to enjoy a GDP growth of 2-2.8 percent while industry and construction may see a rise of 3.5-5 percent, said the report.

The MPI also forecast that Vietnam’s consumer price index (CPI) will increase by 6 percent this year and that the country will only be able to generate jobs for around 1.5 million workers, failing to fulfill its set target of 1.7 million.

To reach these targets, the ministry put forward several measures to be carried out in the near future with the focus on implementing the government’s five groups of solutions.

Participants at the conference suggested a maximum overspending of 8 percent for this year, saying that a rate of between 6.5-7 percent was appropriate.

The President of the Small- and Medium-sized Enterprises (SMEs) Association, Cao Si Kiem, said that a GDP growth of 5-5.5 percent for the whole year is appropriate and more feasible.

He complained however, that the implementation of government policies and solutions remained two slow.

The allocation of VND 20 trillion from government bonds should be used properly so that the State’s money will go to the people it has targeted, which will help to create jobs and ensure social welfare, he added.

The session will continue on May 8 with a discussion on a draft report on amendments to the law on capital construction investment.

Source: VietnamPlus

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