Addressing the session, NA Chairman Nguyen Phu Trong said that recent economic woes have had a considerable negative impact on Vietnam’s economic growth, production, exports, employment and daily life.

On the other hand, Vietnam has basically curbed economic decline, maintained economic growth at a reasonable rate, stabilized the macro-economy and sustained social welfare, the NA chairman said.

The economy is expected to grow by 5-5.2 percent for the year, with positive signs in construction, industrial and agricultural production and the service sector, including tourism, Mr Trong said, adding that national security has been maintained and the country’s international prestige has grown.

But he warned that Vietnam still faces many challenges, especially the risk of macroeconomic instability and the possible return of high inflation. The chief legislator urged the NA deputies to heighten their sense of responsibility and come up with some good new ideas in the current session.

Prime Minister Nguyen Tan Dung then delivered a report on the major socio-economic issues of 2009 and the targets, tasks and solutions in the 2010 plan for socio-economic development.

Mr Dung said the global economic crisis has had a serious impact on the Vietnamese economy, especially in the areas of export, investment and tourism. At the same time, the country has repeatedly suffered the aftermath of natural disasters and epidemics as well as an increase in anti-state activities by hostile forces.

In the face of all this, the government has closely monitored the ongoing situation and has continually been adjusting its action plan since October 2008.

Mr Dung said that at the NA’s 5^th session in May the government submitted adjustments to its general targets, shifting its priority from curbing inflation to halting the economic downturn.

He added that the first nine months of the year saw positive results in administrative reform, thrift practice and anti-corruption efforts.