The target was announced at the Politburo’s meeting on April 26 to discuss socio-economic issues in the first four months of this year.

Minister of Planning and Investment Bui Quang Vinh said initial positive results were obtained in the socio-economic situation over the past four months, thanks to effective measures to control inflation, stabilize the macro-economy and ensure social welfare.

April’s consumer price index (CPI) saw a slight rise of 0.05 percent, 2.6 percent more than the level recorded in late 2011. The production and business sectors still maintained growth, while export turnover was predicted to be 22 percent higher than the same period last year.

However, the Politburo said the economy is facing difficulties and challenges as economic growth in the first quarter reached only 4 percent, lower than the same quarter last year. Despite interest rates being lowered, they are still high, causing snags for businesses to access bank loans. The number of businesses which suspended operations, dissolved, or defaulted on debts is on the rise, while State revenue is very low and the lives of a section of residents in remote areas are still quite difficult.

The Politburo attributed the above-mentioned weaknesses to the negative impacts of the world economy, budget deficit in many countries and priorities that were concentrated on curbing inflation and ensuring a stable macro-economy, adversely affecting production and business, employment and worker incomes.

In addition, unfavourable weather, epidemics and lax management of ministries, sectors and localities were also among the causes.

Judging from the socio-economic status in the reviewed period, the Politburo predicted that the world and Vietnamese economies will continue to confront difficulties and challenges. Therefore, it is imperative to devise proper solutions to harmoniously implement the socio-economic targets set for this year while ensuring an appropriate economic growth rate of 6 percent.