Socialist Republic of Vietnam

Ha Noi, Feb. 3 (VNA)-- Reality had proved the orientations for renovation correct and they must be continued in order to raise the leading role, working capacity and efficiency of the central and local governments, Prime Minister Phan Van Khai said in Ho Chi Minh City this afternoon, Feb. 3.

The Prime Minister was speaking at the closing session of a three-day Cabinet meeting to discuss measures for implementing the 2001 socio-economic plan.

He reviewed the work of the central and local governments during the past year, including the renovation of institutions and the operations of the administrative apparatus to have both adapt to State management and to a socialist-oriented market economy.

The Prime Minister said there had been successes in bringing into full play Viet Nam's internal strength and liberating and developing its production capacity; utilizing the positive impacts of the market while raising the capacity of macro-state management; making external economic activities more efficient; combining economic growth with cultural development; and achieving social progress and equality while consolidating national defence and social security.

The Prime Minister also discussed several key issues in leading and managing the central and local governments to effectively implement this year's tasks.

He underlined the need to attract more investment for economic development and to expand markets to obtain a GDP growth of between 7.5 percent and eight percent or more in 2001, saying the amount and efficiency of investment affected the pace of national growth.

The Prime Minister emphasized the effective use of the State budget and credits, explaining that although the State budget accounted for only one-fifth of total investment, it was the prime source of capital for the development of infrastructure and public works - both spurned by investors because of slow return - and highway construction. In this way, it helped boost the investment environment.

The Prime Minister also emphasized the need to create better conditions for all economic sectors so as to bring into full play their production and commercial capacity and incentive schemes for different types of enterprise: State-owned, cooperatives, private, and foreign-invested.

In facilitating and expanding the market, the economy would see high growth rate and sustainable development only when it found outlets for products and services, he said. Therefore, production must be linked with marketing, and the competitiveness of goods and services must be raised in terms of quality and price.

The Prime Minister noted that besides the many bright spots in social and cultural activities, there were still many outstanding problems in society. He asked authorities at all levels to become better State managers to develop cultural and social activities.

He said that the decisive factor in effectively implementing the administrative reform programme was for himself, other Cabinet members and authorities at all levels to be unanimous in their view and highly determined.

Cabinet members answered questions about concrete matters asked by key officials from localities and this created unanimous agreement and reinforced determination to efficiently implement the National Assembly resolution on socio-economic development in 2001.--VNA

-------