As part of a scheme to improve the country’s sovereign credit rating by 2020, the government has set a target of achieving a GDP per capita level of USD3,000.

Foreign debts could be restrained to below 50% of GDP

The scheme, which has been approved by Prime Minister Nguyen Tan Dung, aims to achieve Moody's investment grade of BAA3, and Standard and Poor's or Fitch's BBB- rating.

To realise this goal, annual GDP growth must remain at around 7-8% from 2011-2020. In the meantime, policies to encourage investment and consumption and the incremental capital output ratio (ICOR) must also be lowered.

Specific priorities have been set, such as achieving 11-12% annual export growth by 2020, and reducing trade deficit and lowering export surplus to less than 10% by 2015. A consumer price index target has been set at 5-7%.

The government will try to increase the foreign exchange deficit equivalent to about 12 weeks of imports and meet international standards.

They will also reduce the budget deficit to 4% and keep public debt below 65% of GDP in which government debt is expected to be less than 55% and foreign debt below 50% of GDP.

State agencies were asked to be careful but flexible in managing and issuing policies. 

Outstanding loans for sectors that are discouraged from investing will be controlled to prevent bad debts. At the same time, human resources will receive more attention in order to improve the usage of the state budget and curb ineffective investments.

Better provision of social security and welfare will receive more focus in the future.