Vietnam Prime Minister Nguyen Tan Dung has called for the improvement of the market mechanism in Vietnam so that the country can reach a high GDP growth of between 8.2-8.5 per cent in 2007.
In his report read before the National Assembly during the 10th session of the 11th parliament that opened October 16 in Hanoi, the prime minister said this task is particularly urgent next year when the country enters the World Trade Organization.
Though Vietnam has been implementing this first and foremost task for years since the launch of the doimoi policy, a “socialist-oriented market mechanism” is now vital for the country to grow rapidly and sustainably against any adverse impacts of the irresistible integration process, Dung said.
To better implement this task, PM Dung highlighted the need to build a complete legal system with a focus in building up a strong banking system and a sound financial market to ensure sufficient investment capital for the economy.
He also said the government will reduce its intervention in pricing and will next year float prices of cement, steel and fertilizer and cut down State subsidies for petroleum, coal and electricity production and trading. Meanwhile, the government will also make efforts to boost the developments of the markets of real estate, labor and science and technology among others.
In an attempt to attract huge capital for economic development, Dung also pledged to strongly improve the investment environment, eliminating all forms of discrimination against any investors from inside and outside the country. The PM especially emphasized the role of private and foreign investors, saying the government will work out policies to facilitate their business.
Besides, the government will go ahead with its plan to restructure all State-owned enterprises (SOEs), allowing most SOEs to go public in the 2006-2010 period, with 600 slated to do this next year. Dung also hoped some 100 equitized SOEs to list on the local bourses in 2007.
The government leader also underlined other important tasks for his government next year including the improvement of infrastructure system, promotion of agricultural and rural development, reform of education and training, development of scientific and technological research, and dealing with burning social, cultural and environmental issues.
PM Dung, who was elected to his position just a few months ago, also vowed to speed up administrative reform, raise state management capacity and resolutely fight corruption and wastefulness, which are hindering national development and making local people and foreign investors lose their faith in the communist ruling system in the Southeast Asian developing country.
According to Dung, Vietnam will strive for major socioeconomic targets for next year such as economic growth of 8.2-8.5 per cent and GDP per capita of $820, export growth of 17.4 per cent. The country will also eye to generate 1.6 million jobs, and providing clean water to 80 per cent of urban dwellers and 67.2 per cent of rural population.
Dung predicted Vietnam will gain GDP growth of 8.2 per cent this year, compared with the 8 per cent set by the National Assembly, and the per capita GDP will also increase to $720 for the country with a population of 84 million.
This year, Vietnam will see high growth of 10.4-10.5 per cent in industrial and construction value, 8.2-8.3 per cent in services and 20 per cent in exports, all of which are higher than the targets, Dung said.
The outcome in some areas this year are also very outstanding, such as social investment, accounting for 41 per cent in GDP, the highest level over the past many years, which contributes a lot to the GDP growth, he said, adding that export of products has grown in volume as well as values, the markets of export have continued to be broaden, and the foreign direct investment has rose up to $6. 6 billion, a year-on-year growth of 19 per cent.
Dung also reported progress has been made in other fields such as international integration, culture, healthcare, environmental protection, state management and administration reform despite unfavorable events including outbreaks of diseases, frequent occurrence of natural disasters and increasing world prices of key materials, especially petroleum price this year, the prime minister stated, adding that Vietnam has concluded bilateral, multilateral negotiations and completed basically the preparation work for joining the World Trade Organization (WTO) late this year.
By the end of 2006, the country will slash the poverty rate to 19 per cent and is estimated to face consumer price index of some 7-7.5 per cent for the whole year, basically meeting the target, Dung said.
The communist nation's 496-member assembly meets twice a year to discuss the nation's socio-economic development and to ratify laws.
During its 10th session, slated for from October 17 to November 30, the highest legislative body will discuss socio-economic performance this year and major targets for next year.
Deputies are also to discuss the implementation of the anti-corruption law, reports on petition and denouncement settlement, the budget allocation in 2007, and reports of the council for the ethnic minorities on the implementation of the policy on land use for production and accommodation.
The assembly plans to pass 11 laws and one resolution, including those on tax management, vocational training, gender equality, organ and tissue donation and transplantation, and technology transference, and give opinions to six others, including those on personal income tax, quality of product and commodity, and legal assistance.
The parliament is also expected to ratify the resolution on Vietnam’s accession to WTO on November 28 after the 149-member WTO meets to admit Vietnam on November 7.
Under the WTO terms, Vietnam won’t be considered a full market economy in the next 12 years, meaning Vietnamese companies will face possible lawsuits on dumping charges in many countries during the period.
(PM Report at NA Meeting, Local Media)
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