Hanoi (VNA) - The Government should take the initiative in building short- andlong-term scenarios for socioeconomic development and review major targets ofthe economy for 2020 and 2016-2020, which will be the basis for adjustingtargets, law makers said at the National Assembly (NA) Standing Committee’s meeting on May 15.

Discussingthe Government’s supplementary assessment of socio-economic development andState budget performance in 2019 and the first months in 2020, NA StandingCommittee members lauded the Government’s efforts and measures to supportpeople and enterprises affected by the COVID-19 epidemic. 

Presentingthe Government’s report, Minister of Planning and Investment Nguyen Chi Dunghighlighted that 2019 is the second year the country fulfilled all 12 keytargets set by the NA, with a GDP growth rate of more than 7 percent.

Entering2020, Vietnam’s economy has been seriously affected by the COVID-19 outbreak,with most sectors suffering from growth decreases. Some industries were even almostfrozen such as transport, services, trade and tourism.

As such, theGovernment has drafted two scenarios for the economy, he said, elaborating thatin one scenario where Vietnam has basically contained the epidemic since thelatter half of April and the country’s important trade and investment partnersare able to control the epidemic in the third quarter, the GDP growth ratewould be around 4.4-5.2 percent for this year.

In the secondscenario, where Vietnam has basically contained the epidemic since the latterhalf of April and the country’s important trade and investment partners areable to control the epidemic in the fourth quarter, the GDP growth would beprojected at 3.6-4.4 percent.

The ministersaid considering the scale and level of impacts of the COVID-19 pandemic, theGovernment is of the view that it is necessary to revise the targets for 2020.

TheGovernment’s report suggested that the GDP growth target should be revised downto 4.5 percent from the initially 6.8 percent. If the world situation developsin a favourable direction with the pandemic put under control and the internationalmarket recovering, the target could be raised to 5.4 percent to ensure meeting thegoal of an average annual growth of 6.5 percent in the 2016-2020 period.

Export growthshould be revised down to 4 percent from the previous 7 percent, and CPI at 4percent instead of under 4 percent, while State budget collections would bereduced by 163 trillion VND (nearly 7 billion USD).

A report ofthe NA’s Economic Committee confirmed the Government’s assessment, saying that theGovernment should research and submit to the NA adjustments to targets withinthe legislative’s jurisdiction, while working out specific and flexible solutionsfor the best possible performance.

NA ChairwomanNguyen Thi Kim Ngan agreed that the initially set GDP growth target cannot bereached and State budget collection is certain to reduce. However, she said theadjustment of targets requires time for thoroughly evaluation and permissionwhile only several days remain before the opening of the NA’s 9th session.

Vice Chairmanof the NA Phung Quoc Hien asked the Government to continue review forecast for2020 and build a third scenario for the possibility that the pandemic couldprolong into 2021.  

The NA StandingCommittee agreed that there is not sufficient legal ground to submit theadjustment of targets to the NA at the upcoming 9th session. Ifnecessary, the adjustment will be presented to the NA’s 10th session.

Also duringthe meeting, the Government reported that State budget collection in the firstfour months of the year reached 32.5 percent of estimates, down 5.9 percentyear on year, with most types of revenue falling compared to the same periodlast year.

Head of theNA’s Finance-Budget Committee Nguyen Duc Hai said tax reduction measures tosupport people and citizens result in remarkable reduction in budget collectionin the past four months.

The committeealso noted the slow disbursement of development capital by ministries, centralagencies and localities. It urged the Government to work harder to removedifficulties for production-business activities, speed up public capitaldisbursement while tightening order and discipline in public capital managementand use.

According tothe committee, it is not feasible to achieve the growth target set in the NAresolution, while the budget balance will be affected by reduced revenues andrising spending needs to cope with the pandemic, ensure social security andsupport enterprises./.