Prime Minister Nguyen Tan Dung, who chaired the meeting, said that the global financial meltdown and economic crisis plus domestic natural disasters have obstructed the production, business and export activities of various sectors.

He noted that November was the fifth consecutive month that the value of industrial production has declined considerably. The construction sector has achieved a minus growth rate for the past months. A downward trend has been seen in exports, investment attraction, budget collection, the stock market and services. The prices of farm products such as rice, coffee and rubber have fallen by between 30-50 percent, while great volumes of cement, steel and fertilizers remain in stock.

He attributed the decline to the global economic crisis as well as the country’s poor competitive capacity. He affirmed that the Government had anticipated these adverse effects and drawn up plans to cope with the situation while implementing anti-inflationary measures several months ago.

According to the PM, a greater effort will be made to prevent the economic slump, secure a steady growth rate and ensure social welfare. To this end, he asked ministries, sectors and localities to immediately implement the following major solutions.

Firstly, he asked them to examine and iron out snags for businesses to boost production and exports, especially for highly competitive products, including seafood, rice, coffee and rubber. He underlined the need to increase trade promotion activities to seek and expand outlets for key export staples such as processed products, garments, footwear, wooden products and plastics, while considering visa exemptions to attract foreign tourists from key markets.

Second, investment and domestic consumption should be stimulated. He asked these relevant agencies and localities to disburse State budget allocations for construction projects in the education, healthcare and agricultural sectors. He required them to create a favourable environment for foreign and private businesses to invest in socio-economic infrastructure, to supply capital and effectively implement transport, electricity, fertilizer, cement, irrigation, school, healthcare and housing projects.  

Third, he called for intensive efforts to implement flexible financial and monetary policies to stimulate production, consumption and export. Relevant agencies were required to restructure debts to support businesses, especially small- and medium-sized ones, remove fees and charges and irrational administrative procedures relating to import-export and customs activities.

The PM announced that the Government will allocate US$1 billion to stimulate investment and consumption.

Fourth, to ensure social welfare, the Government leader asked the relevant agencies to effectively implement poverty reduction programmes, apply the unemployment insurance model and assist the 61 poorest districts n the country. 

Fifth, he assigned the relevant ministries and agencies to study, analyse and makes forecast and recommendations to the Government to cope with any domestic and global fluctuations.

He also ordered them to ensure an adequate supply of essential goods for the upcoming traditional lunar New Year festival (Tet), prevent the transport and trading of firecrackers, and ensure security and social order during the Tet holidays.