Brian Jeffrey
The National Assembly aims for a 6-6.5 percent GDP growth rate, while the Ministry of Planning and Investment pushes for 6.5-7 percent, surpassing predictions by the IMF, World Bank, and ADB.
Fear of making mistakes has hindered progress in public and private sectors. The MPI stresses the need to overcome this fear and take responsibility to propel development.
Public investment, vital for progress, has seen low disbursement rates. For instance, HCM City disbursed only a small portion of its allocated capital in the first half of the year, impacting its growth.
Private sector investment increased by only 6.7 percent in the first half, a cause for concern given its significant role as a growth driver.
The number of new businesses and those resuming operations is barely higher than those leaving the market, indicating a stagnation in the business environment. Challenges such as weak domestic demand and lack of new contracts are prevalent.
The recent minimum wage hike has added pressure on prices and inflation, calling for a boost in purchasing power and private investment in the latter part of the year to support GDP growth.
Localities face obstacles such as cumbersome procedures in construction, investment, and regulatory compliance. Decentralization is recommended to streamline processes and facilitate growth.
The MPI suggests establishing a steering committee to identify and address legal obstacles and amend laws on public investment and public-private partnerships to promote decentralization and eliminate barriers.
