Vietnam’s 2006 GDP growth rate is forecast to reach 8 per cent, which is lower than the 8.5 per cent level set early this year due to great obstacles facing the emerging economy including fluctuation of oil prices on the world market and unprecedented outbreak of bird flu and foot-and-mouth diseases, state media reported.
The prediction was made at the regular monthly Cabinet meeting held in Hanoi on August 30-31 under the chairmanship of Prime Minister Nguyen Tan Dung and his subordinates, which focused on assessing economic targets set for this year and seeking measures to boost socio-economic growth in the coming time.
Cabinet members also discussed the completion of multi-lateral WTO negotiations, poverty reduction as well as serious corruption-related cases that need to be brought to light soon.
According to reports delivered at the meeting, Vietnam achieved an export value of US$25.98 billion over the past eight months, a 24.3 per cent increase over last year. The high increase resulted from an over 20 per cent soar of the earnings from exports of 14 key items, of which export revenues of seven export staples exceeded US$1 billion. They are crude oil, garments and textiles, footwear, aquatic products, rice, electronic products and computers and wooden products.
In the eight-month period, the industrial production value soared 16.7 per cent on year while the foreign direct investment disbursement reached US$2.58 billion, up 15 per cent on year and the State budget revenue was estimated to be up 15.6 per cent, accounting for 64.7 per cent of the yearly target.
Meanwhile, the CPI was up 4.8 per cent, lower than that a year ago.
The country also welcomed more than 2.4 million foreign visitors in the first eight months of this year, a 4.8 per cent year-on-year increase.
According to the reports, Vietnam’s economic structure is continuing to shift toward industrialization and modernization while the State budget and international balance of payments are being stabilized. The country managed to mobilize internal and external resources for development investment.
Relating socio-economic development plans for 2007, the Government set a GDP growth rate of between 8-8.5 per cent and a per capita GDP of US$820. It will try to generate jobs for about 1.6 million people and reduce the malnutrition rate of children under five to below 22.3 per cent.
To maintain the annual GDP growth rate of 8 per cent in the period of 2006-10 and reduce the poverty rate to 10-11 per cent by 2010 from 22 per cent at present, Permanent Deputy PM Nguyen Sinh Hung, the former finance minister, urged for continued appropriate policies adopted by the country’s financial sector to mobilize idle investment capital, which accounts for 38-40 per cent its GDP.
PM Dung, meanwhile, asked for breakthroughs in capital construction investment, administrative reform, as well as in the fight against corruption and wastefulness to be made in 2007, citing Vietnam’s coming accession to the WTO will bring both opportunities and challenges. Therefore, he said Vietnam must be strongly transformed into a market-oriented economy.
The PM also asked ministries and agencies to intensify macro management in the remaining months of the year, work harder to prevent a possible recurrence of bird flu, enhance preparations to cope with floods and storms, boost exports, and reduce traffic accidents.
PM also emphasized that new laws must be well prepared to ensure their validity and practicality. Priority should be given to the drafting of the Government Organizing Law, the Press Law, and the Population Law, said the Prime Minister.
At the meeting, the government also discussed the legislation programs for 2007 to submit to the National Assembly.
Vietnam Economic Times, Investment
Vietnamese
