Vietnam Sets GDP Growth of 8.6 Per cent for Final Half

According to a report by the Ministry of Planning and Investment, some major economic sectors have gained encouraging results. The first half export turnover maintained a high growth rate, reaching over US$18.728 billion, up by 25.7 per cent over the same period of 2005. In particular, trade deficit increased by only 14 per cent in comparison with that of 22 per cent of the same period last year. Foreign investment inflow continued to witness a high increase, reaching US$2.84 billion.

 

However, shortcomings of the economy, such as low value added of the industry, high input costs, complicated developments of price, slow ODA disbursement and poor competitiveness of goods, were slowly overcome.

 

These shortcomings, alongside ineffective activities of State-owned enterprises and the administrative apparatus with authorities in many localities still troubling enterprises, resulted in a fact that GDP of the first half of 2006 increased by only 7.4 per cent, lower than that of 7.6 per cent of the same period last year. The figure is much lower than a target of over eight per cent.

 

“To reach a target of over eight per cent in GDP growth rate, in the final half, GDP will have to increase by 8.6 per cent,” said Prime Minister Dung, stressing that in the next two quarters, tough measures would be taken to boost production development, thus accelerating Vietnam’s economic growth. Also, documents providing guidelines on the implementation of the Enterprise Law, the Investment Law will be issued quickly while efforts should be made to help private enterprises overcome difficulties.

 

Cabinet members spent much time discussing issues of Vietnam’s accession to the World Trade Organisation (WTO). Even though Vietnam had made a long progress and is now at the threshold of the organisation, there are still shortcomings which may produce negative impacts after Vietnam becomes a member of WTO.

 

Therefore, the Prime Minister asked cabinet members to disseminate the commitments and agreements signed with the US, advantages and disadvantages after Vietnam’s accession to the organisation. This is to held enterprises to take advantage of favourable conditions for developing production and boosting export, and take measures to minimise negative impacts of the international integration process.

 

The Prime Minister gave a special attention to the role of midwife of ministries, agencies and authorities. He said that it was a decisive factor that ministries, agencies and localities to promote their supervision and guidelines on the implementation of the tasks set by the Resolution N⁰ 1 of the Government for gaining socio-economic targets.

 

Also, to control price increases, it is necessary to prevent and seriously penalize efforts to increase prices of products, taking advantages of any world price increase. Also, chain impacts of oil and petrol price increase should be reduced. The Government has yet to decide on electricity and coal price increase on July 1. The Prime Minister asked authorised agencies to speed up the investigation of major cases of public concern, to make conclusions on the Project Management Unit (PMU 18) soon to keep sponsors informed of the case, facilitating the Consultative Group Meeting in late 2006.