Meeting in Hanoi on October 2-4, the Party Central Committee’s 8^th conference examined the national economy’s achievements, looked at its weaknesses and put forward solutions to secure a steady growth.

According to the Party delegates, Vietnam, like many developing countries, was seriously impacted by the global economic slowdown and rising prices. Locally, the consumer price index, the trade deficit and total payment means of the national economy were much higher than last year. Natural disasters, including floods, and epidemics caused huge losses to production and people’s lives.

Following the Political Bureau’s resolution dated April 4, 2008, the Government adopted 8 solutions to curb runaway inflation and stabilise the macro economy. The National Assembly also adopted a resolution to lower the GDP growth rate to 7 percent from 8.5 percent set earlier and keep inflation in check.

Over the past months, the Government’s solutions to curb runaway inflation have been taking effect. The national economy has maintained a comparatively high growth rate despite difficulties; inflation has been kept under control and begun to fall; and social welfare has been ensured.

The Party members held that the Party and State have gained valuable experience in managing the socialist-oriented market economy during the process of international economic integration. 

They also pointed out difficulties facing the national economy, including high inflation, a high trade deficit, an unsteady macro balance, poor economic growth and slow progress in administrative reforms and the fight against corruption, waste and bureaucracy. 

They said that 2009 is an important year for Vietnam in carrying out the 2006-2010 socio-economic development plan. The country should bring into full play its advantages, including socio-political stability, its increasing role and position in the world arena and the huge development potential to move forward. Accordingly, priority will be given to gradually reducing the inflation rate, stabilising the economy and social welfare issues and maintaining a steady economic growth.  

To this end, the Government should better manage monetary and financial policies, iron out business snags, encourage investments in socio-economic infrastructure and business development, reduce production costs and increase labour productivity and the quality of economic growth. More effective measures should be hammered out to encourage exports, reduce the trade deficit, balance the market laws of supply and demand, generate jobs, reduce poverty and ensure social welfare.

The conference proposed that the Government increase investment in education-training, health care, culture, science-technology and environmental protection. It called for more efforts to accelerate administrative reforms, increase the operational efficiency of the State apparatus, and actively practise thrift and combat corruption, waste and bureaucracy while promoting international economic cooperation and integration.