The PM made the request at a regular Cabinet meeting for April in Hanoi on May 4-5.

It was reported at the meeting that despite the impact of the global economic recession and financial meltdown, the national economy continued to make progress in April and the first four months of this year. Industrial production value increased constantly in February, March and April. Several provinces and cities attaining high industrial growth rates included Ba Ria-Vung Tau (10.1 percent), Quang Ninh (9 percent) and Hai Phong (7.1 percent) compared to the national average of 5.4 percent recorded in April.

Thanks to the government’s investment and spending stimulus packages, total disbursed foreign investment capital (FDI) hit US$2.2 billion and the consumer price index (CPI) increased by 0.35 percent in April. Cabinet members held that if the monthly CPI is kept at 0.4-0.5 percent, Vietnam will maintain its macro-economic stability in the remaining months of the year.

PM Nguyen Tan Dung acknowledged the effort made by the entire political system, from Party organisations, administrations, organisations, businesses to residents, in cushioning the impact of the global economic recession and making sound achievements.

He explained that Vietnam is part and parcel of the global economy, and although the global economic recession is showing signs of slowing down, trade protectionism tends of increase in a number of countries. Therefore, ministries, sectors and localities should make a greater effort to meet targets set for 2009, said Mr Dung.

He said that the government introduced solutions and policies aimed at revamping the economy and ensuring social welfare, however, the implementation of these policies were slow going.

He asked banks to speed up the disbursement of subsidised loans to help businesses expand production and farmers to purchase agricultural equipment for production.  

“The government has decided to raise investment capital for construction projects by an additional VND20,000 billion to VND64,000 billion, so ministries, sectors and localities should accelerate capital disbursement, and at the same time increase inspections,” said Mr Dung. “Unfinished key infrastructure projects must be completed in 2009.”

In the face of the spread of the influenza A/H1N1 epidemic in the world, the PM directed the Ministry of Health to boost preventative measures, enhance dissemination of information and put border gates under round-the-clock surveillance.    

WTO membership after two years

At the meeting, Minister of Industry and Trade Vu Huy Hoang delivered a report on the impact of the international integration process on Vietnam two years after the country joined the World Trade Organisation.

Accordingly, export earnings increased significantly from US$48.6 billion in 2007 to US$62.9 billion in 2008, while the disbursed foreign direct investment (FDI) capital rose to US$11.3 billion in 2008 from US$8 billion in 2007. Total social investment capital reached VND521,700 billion in 2007, equivalent to 45.6 percent of GDP and VND637,300 billion in 2008, making up 43.1 percent of GDP.

Mr Hoang said that the macro-economic management was maintained and flexible monetary policies were adjusted in line with market regulations, with interest rates and foreign currency exchange rates kept under control. Despite a boom in financial and banking activities in 2006-07, State commercial banks preserved their dominant position in the market.   

The socialist-oriented market economy institutions were gradually finalised, helping to accelerate administrative reform, increase the competitive capacity of businesses, and ensure socio-political stability, security and national defence.

After pointing out weaknesses of the national economy, Mr Dung and other Cabinet members stressed the need to step up international economic integration, along with building a self-reliant and independent economy under the State management.

They shared the view that it is necessary to perfect the socialist-oriented market economy, increase the competitive capacity of businesses and the entire economy, step up infrastructure construction and train high-quality labour force.

Mr Dung assigned the Ministry of Industry and Trade, the Ministry of Planning and Investment and the Government Office to collect opinions and complete a report on the impact of Vietnam’s WTO membership for submission to the Political Bureau.