2006-a year full of difficulties and challenges

According to the Lunar calendar, there were two months of July. That meant it would be a difficult year for the nation in term of climate changes.

The forecast was proven totally correct. Vietnam was struck by several typhoons the hardest hitting being Xangsane The landing of the typhoon caused serious damage and losses to central coast provinces. The heaviest toll was felt in Da Nang City.

The unpredictable weather hindered the country’s economic development. In addition, several major corruption cases were reported across the country, notably the project management unit 18 (PMU 18) in the Ministry of Transport.

In the alleged corruption, a Deputy Minister and several other senior officials were related. As a result, the Deputy Minister resigned.

In 2006, the government inspectors conducted 25 major inspection visits and discovered the VND850 billion; US$55 million and over 120,000 euro was mis-used.

Meanwhile, during 346 inspections visits, sectoral inspectors discovered that VND6.267 billion; US$4.2 million and 395.000 euro were misappropriated.

At the provincial level VND 362 billion and 1,898 ha of land were mis-used. The inspectors retrieved hundreds of billions in dong to the state budget and hundreds of ha of land.

Persevering after many ups and downs

After more than a decade of negotiating for the WTO membership, Vietnam finally became its 150^th member.

The event signifies an end to the long period of spontaneous economic development and marks a deeper integration into the global economy.

Even though the country suffered big losses due to the natural calamities and the reportedly rampant corruption cases of 2006, Vietnam was still able to score 8.2 percent in the GDP.

The rate of poor households in 2006 dropped to 19 percent from the 22 percent in 2005.

Across the board, we are proud to say that the state budget, investment, and the international balance sheet were fine.

Following the accession to the WTO, the hosting of the APEC 14^th meeting with the participation of 21 heads of the APEC Economies further contributed to promoting a positive image of Vietnam across the world.

John Hendra, a UN coordinator in Vietnam said the country’s economy had increased by four times since 1986 when it began the renewal process.

As a rice-importing country, Vietnam remained the world’s second largest rice exporter in 2006.

Worthy of note, Vietnam also joined the rank of countries that could make large ocean going ships like Japan, the U.K, Finland and Denmark.

In 2006, more than 4,000 out of 5,800 State owned enterprises (SOEs) were equitised. It is expected in 2007, another 600 SOEs will be equitised, of which five from the State Commercial banks.

Adding to the country’s new look was the appearance of many new high rise buildings.

The first year of the five year plan (2006-2010)

Despite economic successes, Vietnam still remains on the list of the world’s developing countries.

At an annual consultative group meeting in late 2006, many donors expressed their concerns about the inflation rate, corruption, enterprise renovation, banking reform, and the implementation of international commitments.

Responding to the donors’ anxiety, Prime Minister Nguyen Tan Dung said Vietnam wanted to be taken off the list of poor countries by 2010.

By that time, Vietnam hope to have an average income of US$1,050-1,100 per capita, Dung said.

“To achieve that target, Vietnam needs US$140 billion” said Dung.

In an address to international donors, Dung said, “the Vietnamese government is committed to carrying out the fight against corruption. The official development assistance is the money contributed by people from your country and it is a soft loan. It is our responsibility to use it effectively and efficiently so that in the next 30-40 years later the next generations won’t have to complain that they are the ones to have bear to burden.”

In a coordinated effort to lift the country out of its poor-country status, the donors agreed to grant Vietnam US$4.45 billion, a record figure so far.

In 2007, it is imperative for Vietnam to disburse US$2 billion against US$1.5 billion in 2006. The US$4.45 billion will be mainly used in infrastructure development projects, the construction of trans-national highways, the East-west arteries in the central region and the roads in the Mekong Delta in the hope of raising the country’s economic growth rate and promoting the national program on poverty reduction.

Vietnam aims for an annual 7.5-8 percent for its GDP growth in the four years from 2007-2010.

The year of the dog is closing and the year of the pig is approaching. Let’s join hands to build a better world for everyone.