Members of Parliament express concerns about socio-economic data.

Regarding bad debt figures alone, the delegates had at their disposal more than five figures, all provided by reputable agencies.

"Building market confidence" – this was a topic frequently mentioned by many National Assembly deputies during this morning's (May 30th) discussion on the socio-economic situation in 2012-2013.

Nobody knows the true amount of bad debt.

Expressing his doubts about the reported figures, Delegate Nguyen Van Hien (from Ba Ria - Vung Tau province) said: "For many years now, we have accepted the absurd reality that the GDP figures of localities are always one and a half or even twice as high as the national GDP."

According to Representative Hien, in recent years, the life-or-death issue for the economy has been resolving the "blood clot" of bad debts and real estate inventory, but the reliability of these reports is very low. At the end of 2012, bad debts were around 10%, the State Bank of Vietnam's inspection reported 8.6%, and the report at this session stated 7.8%. In March 2012, the State Bank of Vietnam announced that bad debts had fallen to 6%. Recently, the National Financial Supervisory Commission released a figure of 11.8%.

"The actual figures, the nature of bad debt, are much more serious than the published figures? If Circular 02 is applied, a bank's bad debt of 2-3% could increase to 15% or more," Representative Hien stated his reasoning.

Another concern raised by the delegates was: “Up to now, we don't know the actual number of unsold real estate properties. The published figures vary greatly. 200,000 units or 400,000 units? 83,000 billion VND or 40,000 billion VND? What is the public debt? 55% of GDP or 59% of GDP, and is it safe? Why is it that every year more than 50,000 businesses go bankrupt, the number of businesses forced to reduce their operations by at least 30%, and total social investment is decreasing… yet new jobs are consistently created at 1.5 to 1.6 million people and the unemployment rate continues to decrease annually?”

Representative Nguyen Van Hien commented: "These figures look like they've been rigged! Electricity and petroleum companies always report losses, but who knows the truth...?"

And the consequences of presenting unreliable figures: “Without accurate and sufficient data, it is impossible to make a proper assessment of the situation, to accurately grasp trends, and to make correct decisions and policies. As a result, we will face many risks. The National Assembly must know, and the people have the right to know, what is happening to their country,” said Representative Nguyen Van Hien.

Sharing this view, Delegate Ha Sy Dong (Quang Tri delegation) stated: "There is a lack of explanation for concerns about the decline in market and public confidence, because confidence is an extremely important factor in reviving an economy that is currently in critical condition."

Too many optimistic points?!

In the summary report discussing the socio-economic situation and assessing the situation in the first four months of 2013, many opinions suggested that the outlook for 2013 was not as optimistic as the government's report, and that the situation continued to be difficult: the economy was stagnant, growth was low, budget revenue was low, the revenue structure remained mainly from crude oil, and domestic revenue and import-export figures still did not meet the targets. Interest rates decreased, but businesses still found it difficult to access capital, and businesses had not yet found their opportunities.

The government is still struggling to find its direction. Some indicators are significantly lower than in 2010 and 2011, such as the growth rate and the rate of total social investment, yet the number of new jobs created, the unemployment rate, and the underemployment rate in rural areas have decreased, which is illogical. Purchasing power has decreased, production has stagnated, and the government is implementing supply-side solutions, lacking demand-stimulating policies. Social issues are vaguely addressed in the report. Public confidence in the economic recovery is low. Corruption, waste, poverty, and social ills are becoming increasingly complex. In the remaining months of 2013, if policies are not implemented decisively and solutions are not coordinated, it will be difficult to ensure the achievement of economic growth targets, inflation control, and budget revenue targets.

Many concerns have been raised regarding the accuracy of the indicators in the Government's report (which differ from the audited report), and whether the targets for trained workers and the number of hospital beds achieved are merely symbolic. Concerns have also been raised about poverty reduction targets, particularly in poor districts under the Government's Program 30a, and the targets for unemployment rates and job creation, which have been achieved under the current extremely difficult economic conditions. Further explanations have been requested from the Government.

Many delegates argued that many figures presented in the report were inaccurate. Some opinions suggested that the government's reports were too formulaic, repetitive, lacked fundamental improvement, did not reflect real-life situations, and failed to accurately analyze the situation, making it difficult to propose solutions. The information provided by the government's reports to delegates was not aligned with the actual situation, the data lacked persuasiveness, and the assessments were too superficial, making it difficult for delegates to offer feedback to the government, and for the public and the media to fully grasp the difficulties facing the economy. Many assessments by experts and high-ranking leaders did not match those in the reports. The government needs to reconsider its reporting methods on the socio-economic situation. "It is suggested that in each reporting period, the government should focus on in-depth analysis of some of the most important issues," the report stated.

According to (vov.vn) - LT