Minister Nguyen Chi Dung explains about 10.5 million billion in economic restructuring

The nation's treasurer explained to the National Assembly about the 10.5 million billion VND resource for economic restructuring in the next 5 years.

Minister of Planning and Investment Nguyen Chi Dung.

Explaining to the National Assembly late this afternoon, Minister of Planning and Investment Nguyen Chi Dung said that the economic restructuring project is a large, important and urgent matter, especially when Vietnam is making efforts to innovate its growth model for rapid and sustainable development.

According to Minister Nguyen Chi Dung, if economic restructuring is delayed or slowed down, it will be very difficult to narrow the development gap with the world; overcome the middle-income trap; effectively respond to climate change; and take advantage of opportunities from international integration...

Mr. Dung said that the estimated 10.5 million billion VND for restructuring is not a separate resource, but is placed within the overall framework of resources for socio-economic development in the 2016-2020 period.

Accordingly, the economic restructuring plan for the next 5 years will restructure total social investment capital towards gradually reducing the proportion of state capital and increasing the proportion of non-state investment capital, especially investment from the domestic private sector.

State capital is expected to decrease from 39.1% in the 2011-2015 period to about 31-34% in the 2016-2020 period. Domestic private sector capital is expected to increase from 38.3% to 45-48%.

“The 10.5 quadrillion VND resource is the target that needs to be achieved to achieve an average economic growth of 6.5-7% in the next 5 years. Of which, the state budget resource in the medium-term public investment plan and the financial plan for the 2016-2020 period is expected to be 2 quadrillion VND,” Mr. Dung explained.

However, Mr. Dung said that relying solely on the amount of resources to restructure the economy is not enough, but the important thing is to use resources effectively, first of all, state resources.

At the same time, it is necessary to speed up the handling of bad debts and apply decisive measures to weak commercial banks; equitize and divest state capital in enterprises; and restructure the investment portfolio and assets of the state sector, first of all, state-owned enterprises.

“Economic restructuring is a complex, difficult and challenging process. To do so, it requires strict budget discipline; increasing the efficiency of public investment; cutting regular expenditure; reducing the budget deficit to 4% of GDP; equitization...”, Mr. Dung stated.

The Minister of Planning and Investment stated that the economic restructuring has been slow in recent times due to weaknesses in the implementation organization. Therefore, the next 5-year plan will pay attention to this stage, and recommended that the Government have a specialized unit to direct and monitor.

According to Vietnamnet