HANOI, Aug. 10 (Xinhua) -- Vietnam is facing an uphill battle to achieve this year's gross domestic product (GDP) growth target of 6.5 percent due to challenges concerning market, cash flows and administrative procedures, local media reported, citing the Ministry of Planning and Investment.
The resilience of enterprises has been eroded after the COVID-19 pandemic, and production and business activities in many sectors are struggling with difficulties, local newspaper Vietnam News reported, citing Deputy Minister of Planning and Investment Tran Quoc Phuong.
Failure to achieve this year's growth target will affect the implementation of the five-year plan for 2021-2025, and the 10-year strategy for 2021-2030 in the Southeast Asian country, according to the official.
It is important to amend policies related to production, business, and investment to stimulate consumption and fuel growth, he added, noting challenges concerning market, cash flows, high capital costs and access to credit.
Nguyen Anh Duong, head of the general research board at the Central Institute for Economic Management (CIEM), said more attention should be paid to removing obstacles for businesses, with a particular focus on enhancing their capital access and capital absorption capacity.
Duong also suggested that localities open more fields to foreign investors, boost cooperation with other localities in foreign direct investment (FDI) attraction, step up technology transfer from foreign firms, and increase training for laborers to meet FDI companies' requirements.
Le Xuan Nghia, a member of the National Financial and Monetary Policy Advisory Council, said that the Vietnamese economy will record a U-shape recovery instead of a fast one because the global economy is also rebounding gradually. He predicted that the economy will recover more strongly in the fourth quarter of 2023. ■