Socialist Republic of Vietnam

Deputy Prime Minister Nguyen Manh Cam said that the assistance from international donors, World Bank and associations of businesses had helped Vietnam carry out socio-economic development strategies and plans as well as the strategy for reducing poverty and eradicating hunger.

Mr Cam was addressing the closing ceremony of the mid-term Consultative Group Meeting for Vietnam held in Ho Chi Minh City on May 24.

Vietnam's gross domestic product (GDP) growth has reached 7.5% and the number of poor households has been halved, noted Mr Cam.

The country's industrial output rose 13.9% in the first four months this year while investors registered US $550 million of investment capital, a 10% year-on-year increase.

Vietnam has signed agreements with donors for official development assistance (ODA) totalling US $833 million. ODA disbursement is estimated at about US $439 million, including US $330 million in loans and US $109 million in grants.

The Enterprise Law continued to stir up the local business climate, the deputy prime minister said.

The first quarter saw nearly 6,000 new enterprises licensed with combined investment of US $584 million, an increase of 26% in number and 68% in capital on 2001. The service sector, including the tourism industry has continued to grow.

Ticking off the list of achievements, Mr Cam said the circulation of goods in the domestic market remained stable, budget revenue continued to rise, monetary activities had made progress and the ratio of banks' bad debt was still declining.

Vietnam's good record in social development and poverty reduction have won admiration in the international community, Mr Cam said.

The meeting also reviewed the Comprehensive Poverty Reduction and Growth Strategy which contains a host of key development goals and targets.

Country director of the World Bank in Vietnam, Andrew Steer, said that foreign investment picture is improving for Vietnam with real inflows in 2002 expected to be over US $1 billion for the first time since 1997