HANOI: Prime Minister Nguyễn Xuân Phúc is concerned that Việt Nam might fail to achieve its GDP goal of 6.7 per cent this year. In his report of the country’s socio-economic development in 2016 to the National Assembly (NA) this morning, Phúc said the average economic growth in the last three quarters only reached 5.97 per cent. This was much lower than the GDP rate of 6.5 per cent in the same period last year.
During the second meeting session of the newly-elected NA, which opened this morning, the PM on behalf of the government said projected GDP growth this year may only reach 6.3-6.5 per cent, slightly lower than the original target of 6.7 per cent set by the previous NA. “That economic growth has failed to meet the goal, will affect other targets, for example it will lead to higher budget deficit and public debt,” Phúc said.
Việt Nam’s public debt was among the top issues on the government’s agenda as it has already crossed the red line set by the NA at 65 per cent of the GDP. The Ministry of Planning and Investment in its latest report released last month issued a warning that the risk of public debt climbing beyond the ceiling rate was becoming “more apparent”. Despite the looming risk that Việt Nam might not be able to reach the GDP goal this year, the government still proposed a GDP target of 6.7 per cent for next year, according to Phúc.
