Socialist Republic of Vietnam

The Government, in its report to the on-going sixth session of the 11th Legislature, pointed out that the country maintained a high gross domestic product (GDP) growth rate of 7.6% in the first ten months of the year despite facing various difficulties and challenges.

Permanent Deputy Prime Minister Nguyen Tan Dung said industrial production registered an annual growth rate of 15.6%, of which the added value grew 10.6%, the highest record in many years. Steady developments and improvements were seen in a number of services with the total value of sales of goods and services rose 17.7%. Despite fierce competition, the country earned US $25 billion from exports, a year-on-year increase of 24%, almost doubling the annual target. 2004 is the first year that Vietnam obtained an average monthly export value of more than US $2 billion. Six export items registered overseas sales of more than US $1 billion.

Economic restructuring has been conducted in many industries and services toward obtaining higher efficiency. The structure of services began to change, focusing on services offering high added values such as finance, banking and insurance.

Economic sectors made active contributions to the country's economic growth rate. Particularly, the private sector achieved the highest growth rate, playing a key role in generating more jobs.

Various investment sources have been mobilised for development. The rate of investment mobilised from domestic sources accounted for 72% of the total social investment in many years.

Progress was recorded in a number of social and cultural domains, particularly in rural and remote areas inhabited by ethnic minority groups. Achievements were also seen in the on-going fight against hunger and poverty. Due attention was given to health care activities.

National defence was strengthened while security and social order remained stable. Complicated developments in hot spots were satisfactorily solved. Security and political instability along border areas were effectively addressed.

The successful organisation of the fifth Asia-Europe Meeting (ASEM 5) opened up a new stage of development, pushed Asia-Europe co-operation and raised Vietnam's prestige in the international arena.

The report pointed out that positive changes were seen in the performance of the Government and branches at all levels. The Government made timely decisions on socio-economic development in conformity with the real situation in the country. It held frequent dialogue with businesses in an effort to promptly solve difficulties arising in socio-economic activities.

However, the Government is aware of difficulties and challenges ahead.

The quality and effectiveness of economic growth failed to meet expectations. Economic restructuring has not rapidly changed toward modernisation. The implementation of development projects was slower than scheduled with a low rate of disbursement. The consumer price index hike produced an adverse impact on production and people's lives. The mobilisation of social participation in various domains was of low efficiency. Administrative reform fell short of renovation requirements. Social evils such as drug addiction, illegal gambling and prostitution have not yet been satisfactorily curbed. The control of traffic accidents remains a problem to be addressed.

The Government admitted that subjective factors were the main causes of the above-said problems. The delay in promulgating guidance led to the time lag in implementing mechanisms and policies. The cumbersome State apparatus together with ineffective operation of a group of State agencies prevented those agencies from reacting to market developments. A number of State employees and officials were irresponsible, causing trouble to people and entrepreneurs.

The spread of avian flu and soaring prices of a number of products are objective factors, causing adverse impact on business and production activities and lowering economic growth rate. (VNA)