Vietnam’s Prime Minister Prioritizes Support for Production and Business

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Apr. 4 – Vietnam’s Prime Minister Nguyen Tan Dung urged ministries to prioritize supporting production and business at a recent cabinet meeting.

The monthly review of socio-economic performance for the first quarter of the year highlighted a number of positive achievements, particularly in the service and export sectors. The first quarter recorded a 4.89 percent GDP growth rate which, while lower than fourth quarter of last year, was higher than the comparable period last year. A lower inflation rate has also been recorded in the same period.

To ensure continued progress Prime Minister Dung called for a number of measures to further support the development of production and business.

He highlighted the need for the removal of additional barriers to enterprise development and asked for relevant sectors to deal with high inventories and bad debts.

The government committed to continue the pursuit of effective and flexible monetary policy, the provision of more credits for production and emphasized the importance of lowering interest rates. These moves would be particularly important in the fields of agriculture, rural development and the operation of labor-intensive enterprises.

The Minister of Agriculture and Rural Development, Cao Duc Phat, also called for additional measures to provide support for agricultural product enterprises, including a reduction of taxes to less than 20 percent. He further proposed lowering the value-added tax for fertilizers and feed and other agricultural input materials to spur the development of agricultural production.

The meeting also recognized the need to accelerate trade and investment promotion activities, with more favorable foreign investment mechanisms needing to be formed and applied targeted at high-tech projects and supporting industries.

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