Vietnam PM vows to cut bureaucracy as GDP growth falls short of target

The Vietnamese government plans to streamline outdated regulations and cumbersome administrative procedures to support businesses and boost economic growth, Prime Minister Pham Minh Chinh said, as the country faces the reality of not hitting its growth target for this year.

At a parliament hearing on Wednesday, Chinh admitted that troublesome bureaucracy is burdening enterprises and citizens, while a large number of officials and civil servants are shying away from their responsibilities, slowing the decision-making process.

The government will direct relevant agencies and local authorities to remove hurdles in the fields of land value appraisal, housing, real estate, planning, bidding, and investment, he added.

The government chief pledged to review and simplify business conditions regarding the approval process of investment projects and administrative procedures affecting the whole of society.

Chinh also mentioned giving more space to decentralization and stimulating proactiveness and innovativeness in the administrative apparatus.

Regarding traffic infrastructure development, the prime minister committed to resolve bureaucratic problems, accelerate site clearance, ensure supply of construction materials, among others. The government aims to expand the expressway network to more than 3,000 kilometers by mid-2026, which marks the end of the present five-year government term.

He also vowed to ensure energy security by implementing Power Development Plan VIII, building more transmission grids, perfecting competitive electricity markets, allowing direct purchasing power mechanisms, stimulating rooftop solar power for self-consumption, and ensuring fuel supplies.

Chinh noted that the government is unlikely to achieve five major socioeconomic targets set for this year, including GDP growth, income per capita, the weight of manufacturing to GDP, and productivity growth.

The government will strive to obtain economic expansion of 5% plus this year through boosting three growth drivers, namely investment, consumption, and export; accelerating public investment disbursement; promoting manufacturing and supporting industries; and fostering infrastructure development. The parliament has set the GDP growth target at 6.5%.