China's devaluation of the yuan makes it difficult for Vietnam to export to this market.

(Baonghean) - The recent growth slowdown and devaluation of the yuan by China - the world's second largest economy as well as other emerging economies, has reduced import demand, affecting global trade, investment and economic growth.

For Vietnam, the decline and devaluation of the Chinese currency has made it difficult to export to this market, while also having a detrimental impact on domestic production.

Sewing export goods at Halotexco Garment Joint Stock Company. Photo: An Vinh

Price level tends to increase

The Ministry of Planning and Investment assessed: The G-7 Conference that just ended in Japan warned that the world economy could fall into a recession worse than the 2008 global financial crisis, so it recommended that governments of countries increase economic stimulus solutions, especially stimulus policies to promote economic development.

In addition, world commodity prices have recently been on an upward trend, notably crude oil prices have exceeded 50 USD/barrel at times, up 80% from the lowest level (28 USD/barrel) in mid-January 2016; world agricultural commodity prices are on an upward trend,... are factors affecting input costs, price levels, and inflation in our country in the coming time.

Regarding the domestic economic situation, in addition to the basic advantages, especially the stable macro economy, the positive impact from the implementation of free trade agreements with regions and countries,... our country's economy still faces many difficulties and challenges, especially the consequences of natural disasters, drought, saltwater intrusion, marine pollution; slow economic recovery, low productivity, quality, and efficiency in the context of integration and fiercer competition not only in the export market, but also in the world market, causing more difficulties for our country's economic development.

To achieve the goals set out in the 2016 Socio-Economic Development Plan, central and local ministries and branches must focus on directing, not be subjective in management, need to publicly and transparently disclose all the facts about the country's economic situation to have appropriate solutions, and at the same time proactively prepare different plans to handle the worst possible situations, striving to achieve the targets set by the National Assembly. Economic growth must achieve the goals of both growth rate and growth quality - Minister of Planning and Investment Nguyen Chi Dung said.

Don't be subjective in management

To achieve these goals, in the last months of the year, central and local ministries, branches and localities need to actively and synchronously implement the tasks and solutions set out. Accordingly, in addition to continuing to effectively implement Resolution No. 01/NQ-CP dated January 7, 2016, resolutions of regular Government meetings, especially on the main tasks and solutions to improve the business environment, enhance national competitiveness in 2016 - 2017, orientation to 2020, on supporting and developing enterprises until 2020, ...

Every month, central and local ministries and branches need to clarify the impacts of the implementation of these tasks; which tasks have not been completed on time, and clarify the reasons for the delay.

Regarding inflation control and macroeconomic stability, responsible agencies must closely monitor price developments in the world and domestic markets. From now until the end of the year, there will be no increase in electricity prices or road tolls.

The Ministry of Finance shall preside over and coordinate with agencies and localities to strengthen the supervision of price declaration activities of enterprises, especially consumer industrial goods, agricultural, forestry and fishery products, and production materials. Be cautious in considering removing the price ceiling for milk products for children under 6 years old to protect the interests of consumers.

Gasoline price increase affects production. Source internet

Tax, customs and market management agencies shall strengthen measures to collect tax arrears; prevent and combat smuggling, trade fraud and tax evasion; control expenditures, thoroughly save regular expenditures; ensure the balance of state budget revenues and expenditures according to approved estimates. Restructure the state budget towards efficiency, ensuring national financial security and public debt safety.

The State Bank operates monetary and credit policies in a very cautious, proactive and flexible manner following signals from the domestic and international markets. Researches policies on deposit mobilization and interest rates, and appropriate foreign currency mobilization to mobilize domestic foreign currency resources. Effectively implements Circular No. 06/2016/TT-NHNN dated May 27, 2016. Focuses credit on priority areas such as agriculture, rural areas, small and medium enterprises, etc. Continues to focus on restructuring credit institutions and handling bad debts; closely monitors the operations of weak credit institutions;...

Regarding the handling of difficulties in implementing the 2016 public investment plan, while the Prime Minister has not yet approved the Decision on investment in national target programs, based on the content submitted to the Prime Minister, urgently issue a document guiding the main contents of the program, so that localities have a basis for assigning detailed capital from the state budget plan and government bonds in 2016 of the program to grassroots units and have a basis for localities to develop reports proposing investment policies for new projects starting construction under the Program for 2016 and the entire period of 2016 - 2020.

The Ministry of Planning and Investment shall preside over and coordinate with the Ministry of Finance to urgently review the plan to adjust the government bond capital plan for the period 2014 - 2016 from the remaining capital of National Highway 1A and National Highway 14 to submit to the Prime Minister for decision on adjusting the government bond capital plan for the period 2014 - 2016 and assign the 2016 plan in June 2016. For small projects under national target programs, school consolidation programs with a total investment of less than 5 billion VND, it is allowed to carry out the procedures, procedures, preparation, appraisal, and decision on investment policy according to a shortened process.

Absolutely no barriers

Ministries and sectors need to focus on strictly implementing the provisions of the Enterprise Law and the Investment Law with political determination and the highest efforts, in order to ensure full and consistent implementation of the provisions of these two laws in conjunction with the implementation of Resolution 19-2016/NQ-CP of the Government on key tasks and solutions to improve the business environment and enhance national competitiveness in 2016-2017, with a vision to 2020; especially Resolution 35/NQ-CP dated May 16, 2016 of the Government on supporting and developing enterprises until 2020 to create the most favorable conditions for investment and business activities and protect the legitimate rights of investors; absolutely do not set up unreasonable barriers and conditions for investment and business, hindering the operations of enterprises.

Red River