PM Phan Van Khai optimistic about New Year
Ha Noi, December 30 (VNA) -- On the threshold of the New Year, Prime Minister Phan Van Khai discussed with the Viet Nam News Agency (VNA) Viet Nam's social and economic development priorities for 2002.
He said: "The overall objectives of socio-economic development in 2002 are to continue maintaining a high and sustainable economic growth rate; increase competitiveness; restructure production; re-arrange, renew, and develop State-owned enterprises, raising their efficiency; strongly promote the non-State economic sector and attract foreign investment.
"We also want to improve the quality of human resources; accelerate hunger and poverty reduction; effectively settle a number of urgent social problems; and firmly ensure national security and defence in all circum stances."
He went into detail:
"The Government has set 11 concrete tasks based on four focal points. These include stepping up economic restructuring; fully mobilising investment sources; and raising the competitiveness of commodities and services to rapidly boost total export revenue.
"We also intend to effect substantial changes in education and training, science and technology, culture and health care; and settle social issues such as hunger, poverty, and unemployment, while consolidating national defence and security.
"A number of the key targets already adopted by the National Assembly are:
* A gross domestic product (GDP) growth rate of about 7-7.3 per cent;
* Total export revenue of USD 17.2 billion;
* Total social development investment of VND 175,000 billion, a 17 per cent increase, equal to about 32 per cent of GDP;
* A 7.7 per cent increase in budget revenue collection;
* A 3-4 per cent increase in the consumer price index;
* The creation of jobs for another 1.4 million people;
* A reduction in the poverty rate to around 14-15 per cent (according to the new criteria).
"The world situation is developing in complex ways. Major economies are continuing to slow, or even falling into recession.
"Our economyEs foreign trade income roughly equals our GDP, and foreign capital makes up nearly 40 per cent of total investment, so we will certainly be affected by these developments.
"But we enjoy many advantages, particularly socio-political stability and a fairly high economic growth rate.
"The investment and business environment in our country has also been improved step by step.
"These are the important advantages we take into 2002 and the years that follow."
About development solutions for next year, PM Khai said: "The Government has worked out five key solutions for maintaining the momentum of socio-economic development in 2002.
"The first is to accelerate economic restructuring. Hand in hand with that goes improving the investment and business environment.
"Third, we want to continue our active integration into the international economy and increase exports.
"Making use of our human capital and boosting the skills of our workforce is also vital.
"Finally, we must step up administrative reform and raise the effectiveness and efficiency of the operation of the State apparatus.
"Though differing in the details, all five solutions have been devised in the light of recent experience and take account of the new requirements for national development.
"For instance, to ensure rapid and sustainable economic development, we have to speed up economic restructuring in a way that is responsive to market demand and capitalises on our advantages and strengths.
"At the same time, restructuring should foster and improve our technological and managerial skills, so that we raise the competitiveness of our products and our economy and ensure more efficient development.
"The primary focus of economic restructuring is production and exports. It includes a continued overhaul of the State budget, reform of the banking system, renovation of State-owned enterprises (SOEs) and improvements to their quality and operational efficiency.
"The shifting international and regional situation has brought Viet NamEs socio-political stability into the spotlight, drawing praise from international public opinion.
"We regard this as an important advantage for our economic development. But it cannot be turned to good account if we do not quickly improve the investment and business environment and remove obstacles to investment and business.
"This task becomes all the more urgent in light of the fact that the 2001-05 plan calls for a 1.5-fold increase in total social investment capital as compared to the previous five years.
"To improve the business and investment environment, we have been striving to build a clear-cut, uniform and stable legal environment.
"This involves drafting, amending and supplementing legal documents, thereby creating a uniform legal framework for the development of a socialist-oriented market, and also meeting the requirements of development and integration.
"Furthermore, we must work out a positive, flexible and meticulous financial policy, step up banking and financial reform, increase the nationEs financial and foreign currency reserves, and ensure a sound macro-economic environment.
"Improving the investment environment means continuing to accelerate the renewal process, pushing it deeper and wider, with a focus on building a harmonised and consistent set of market economy institutions within a socialist framework."
Asked how can Viet Nam best promote its integration into the international economy and increase its exports, Khai said: "We regard domestic resources as decisive, while trying to grasp opportunities to get resources from outside.
"The domestic market is very important; so we want to boost purchasing power, spur consumer demand and development investment.
"At the same time, we must tap and expand foreign markets and try to break into new markets to rapidly increase exports.
"In 2002, an increasingly urgent priority will be the realisation of the multilateral and bilateral commitments made during our integration into the international economy.
"This includes commitments within the framework of co-operation with ASEAN, the World Bank and the International Monetary Fund and in implementing the Viet Nam
