Socialist Republic of Vietnam

HA NOI — Viet Nam’s economy managed to expand 7.2 per cent in the first quarter of this year despite prolonged droughts in the central and central highlands areas, the avian flu epidemic, and materials’ price hike, the Government said during a two-day meeting which closed yesterday in Ha Noi.

The Government’s figures matched the General Statistics Office’s report which revealed the first quarter’s growth was way lower than the Government’s full-year expectation of 8.5 per cent.

But the Government argued yesterday that first-quarter GDP was still higher than the 7 per cent growth rate recorded in the first quarter of 2004.

Meanwhile, the country’s exports still grew 16.2 per cent in the period, reaching $6.72 billion.

"Thanks to the close management of the Government and the efforts of ministries, levels and localities, the socio-economy continues to develop quite positively and stably," the Government said.

Yesterday, Government officials also discussed a number of unresolved social issues such as traffic jams and lack of traffic safety in the big cities and crime surges, especially drug dealing.

Nation targets 9% growth

Concluding the Government’s monthly meeting, Prime Minister Phan Van Khai said the country must achieve a 9 per cent economic growth rate in the remaining quarters if previous targets are to be met.

He listed seven measures to be implemented by authorities at different levels and sectors:

– First, to facilitate business and production, particularly industrial production, efforts should aimed at finding new outlets for domestic products and expanding domestic and international markets for local enterprises.

Viet Nam must reasonably exploit its crude oil and improve markets for key industrial sectors such as steel, electricity, cement and textile and garment. Cement plants under construction must be put to use in order to lessen the dependence on clinker imports.

Viet Nam will have to speed up the process of equitising State-owned enterprises, with a focus on those managed by localities.

– Second, to speed up capital construction projects in the country that use budget funds, ministries, branches and localities are required to review capital allocation plans for projects under their supervision. Wrongly allocated funds must be re-structured according to State requirements. Projects without investment decisions must be cancelled from the 2005 implementation plans.

– Third, to aggressively push forward with pro-export measures such as encouraging renewals of technology and diversification of products, especially high-value processed products.

– Fourth, to mobilise more sources of capital, especially idle capital in the population. Authorities must focus on dismantling obstacles and complaints of non-State enterprises; Funds for development must be continued through issuance of corporate, Government and urban bonds.

– Fifth, to continue to curb the hike in prices in the coming months, inflation must be curbed within levels that can be controlled by the state.

On the petroleum price hike as of March 29, the Prime Minister said ministries, branches and localities must strengthen the supervision, inspection and control of the situation to prevent major price fluctuations from occurring.

Businesses must seek ways to cut costs and raise their productivity to help stabilise prices.

– Sixth, preventive actions must be taken to curb traffic accidents and social vices. Traffic police checks and supervision must be strengthened and hefty punishments handed down on violations.

The March 12 train derailment in Lang Co, Thua Thien-Hue Province was a serious case and the Ministry of Transport holds responsibility in this case and must investigate the cause and discipline groups and individuals.

– Seventh, to concentrate on the war on illegal logging and prevent the threat of forest fires.

Yesterday the Government also reviewed its 2003 State budget allocation and auditing reports; the planning and land-use plans of provinces and the ministries of Defence and Public Security; the National Assembly’s action plan on education; and projected laws such as the Law on Transfer Instruments in Banks and Law on Thrift Exercises and Waste Prevention.

Viet Nam News, March 31, 2005