Socialist Republic of Vietnam

The national economy keeps growing fairly steadily in 2001 with marked progress in industrial and agricultural restructuring.

This assessment was made by the government in its annual socio-economic development report which will be submitted to the 10th session of the 10th National Assembly (NA), opened on November 20.

This is the first time that a government report to the NA has been publicised through mass media prior to the opening of an NA session to seek comments from voters nationwide.

The report estimated that the combined production value of the country's agriculture, forestry and fisheries in 2001 will show an increase of 4.1% year-on-year. The agricultural sector shows growth of 2.2% while the fisheries sector has risen 15.5%, accounting for 16% of the total value.

An additional 230,000 hectares was planted with new forests together with 150,000 hectares reforested this year, bringing the country's forest coverage to almost 34%.

Total aquatic output is estimated to reach 2.3 million tonnes for the whole year.

Industrial production value is expected to post a 14.5% year-on-year increase. The State-owned sector registers an annual growth rate of 12%; the non-State sector, 19.5%; and the foreign-invested sector, 14.2%.

Steady development has been observed in the service sector, which includes tourism, transportation, post and telecommunications, finance and banking services, and technology transfer.

Earnings from retail sales and social services rose 8.7% while the total volume of goods in circulation jumped 9.6% and the number of passengers using public transport increased by 6.7%.

Vietnam now boasts 5.3 telephones per 100 people. The tourism sector has registered a 7.5% increase in foreign arrivals and a hotel room occupancy of more than 60% this year.

The government report also estimates an eight per cent year-on-year increase in export value and a 2.3% year-on-year rise in import value this year.

The country's surplus import value in 2001 makes up almost 2.5% of its total export earnings.

According to the report, total social investment this year is estimated at VND 150 trillion (US $10 billion) or 30.8% of the country's gross domestic product (GDP) up 16% compared to that of 2000.

On foreign investment, the report says total foreign investment is estimated at US $2.2 billion, a rise of 3.2% from 2000. More than 400 foreign-invested projects have been licensed. Combined investment is approximately US $2.3 billion with 200 operational projects permitted to increase their investment by US $500 million in 2001. Investment of newly foreign-invested projects has risen 16% year-on-year while total registered foreign investment increased almost 17% this year.

The government says that total official development assistance (ODA) pledge is US $1.8 billion. ODA disbursement in 2001 is estimated at US $1.7 billion, equivalent to 104% of the annual target and up four per cent year-on-year. Of the total amount, ODA loans made up US $1.3 billion while non-refundable aid accounted for US $370 million. The Japanese Bank for International Co-operation, the World Bank and the Asian Development Bank have provided more than 80% of the total.

Total State budget collection this year is expected to surpass the annual target by 13%, up 7.4% year-on-year.

The report says that State budget overspending is estimated at almost five per cent of GDP in 2001, a decrease of one per cent compared to the estimate made early this year. Meanwhile, the consumer price index in the year has increased an estimated one per cent.

On education, the report says the country plans to have eight provinces and cities reaching the national standard of universal junior secondary education by the end of this year. During the year, 887,000 technicians were trained. Student enrolment at universities and colleges increased six per cent while the number of public employees trained and re-trained rose seven per cent.

This year has also seen strong development in job creation, the report notes. About 1.4 million people have been provided with jobs during the year, 100,000 people more than 2000. The national job creation programme alone has provided a total loan of VND 837 billion (US $55.8 million) to generate and help stable jobs for 330,000 people. In addition, about 40,000 workers have been sent to work abroad this year, helping reduce the rate of unemployment in urban areas to 6.3%.

The report goes on to say that hunger eradication and poverty reduction activities continue to make remarkable progress. About 300,000 households have escaped from hunger and poverty, reducing the poverty rate (classified under the new poverty line) to 16%.

Regarding health care, the report says that the rate of under-five malnourished children has decreased to 32% this year from 34% last year while the mortality rate of under-one children has been reduced to 34% in 2001 from 35% in 2000.

The country's population is estimated at 78.7 million this year with a natural growth rate of 1.36%.

The fight against drug abuse, HIV infection and other social evils has been strengthened during 2001, the report stresses, adding that the number of drug addicts who have received treatment has increased to over 11% this year. (VNA)