The Government held its regular monthly meeting in Hanoi from March 28-29 under the chairmanship of Prime Minister Phan Van Khai.

Regarding the socio-economic development in March and in the first quarter of this year, Mr Khai said the socio-economic situation has remained stable on the back of the relatively high growth of the industrial production and service sectors and expanded export markets.

The high growth of total retail turnover has contributed to raising the total GDP of the first quarter to 7.2 percent. The agricultural production sector has initially ironed out certain snags in overcoming weather conditions to cultivate crops on schedule and prevent the epidemics.

During the reviewed period, no case of bird flu was reported and vaccination campaigns against a possible reoccurrence of the lethal disease continued to be intensified.

In addition, diverse cultural and tourism activities were in full swing to mark major festivities and to prepare for the 2006 APEC Summit to be held in Hanoi later this year.

However, Mr Khai pointed to weaknesses in the socio-economic development situation during the mentioned period. In order to reach this year’s GDP growth rate of 8 percent, he said, it is imperative to devise effective solutions for boosting business and export activities, reducing production costs and increasing competitive capacity. The PM stressed the need to effectively mobilise, use and manage capital inflows and capital construction investment and keep the inflation rate lower than the economic growth.

Mr Khai called on sectors, agencies and localities from across the country to continue to reinforce administrative reform, combat corruption and wastefulness practise thrift and take more drastic measures to reduce transport accidents.

The biggest challenge for the Government in the fight against corruption is to build confidence among people. Any minister involved in corruption will be dismissed and dully punished, Mr Khai noted.

The Prime Minister also underscored the necessity of raising the responsibility of every family and the whole society in preventing negative phenomena in which the Vietnam Fatherland Front and mass organisations play a pivotal role.

During the meeting, cabinet members discussed supplementary reports on the implementation of tasks and plans for 2005 and 2006, the State budget in 2005 and State budget tasks in 2006.

They also discussed a draft report on the enforcement of the bidding law and ordinance on signing and implementation of international agreements.