Socialist Republic of Vietnam

Ha Noi, Nov. 19 (VNA) -- The national economy keeps growing fairly steadily in 2001 with marked progress in industrial and agricultural restructuring.

This assessment was made by the Government in its annual socio-economic development report which will be submitted to the 10th session of the 10th National Assembly (NA), scheduled to open tomorrow, Nov. 20.

This is the first time that a Government report to the NA has been publicised through mass media prior to the opening of an NA session to seek comments from voters nationwide.

This estimated that the combined production value of the country's agriculture, forestry and fisheries in 2001 will show an increase of 4.1 percent year-on-year. The agricultural sector shows growth of 2.2 percent while the fisheries sector has risen 15.5 percent, accounting for 16 percent of the total value.

An additional 230,000ha was planted with new forests together with 150,000ha reforested this year, bringing the country's forest coverage to almost 34 percent.
Total aquatic output is estimated to reach 2.3 million tonnes for the whole year.

Industrial production value is expected to post a 14.5 percent year-on-year increase. The State-owned sector registers an annual growth rate of 12 percent; the non-State sector, 19.5 percent; and the foreign-invested sector, 14.2 percent.

Steady development has been observed in the service sector, which includes tourism, transportation, post and telecommunications, finance and banking services, and technology transfer.

Earnings from retail sales and social services rose 8.7 percent while the total volume of goods in circulation jumped 9.6 percent and the number of passengers using public transport increased by 6.7 percent.

Viet Nam now boasts 5.3 telephones per 100 people. The tourism sector has registered a 7.5 percent increase in foreign arrivals and a hotel room occupancy of more than 60 percent this year.

The Government report also estimates an eight percent year-on-year increase in export value and a 2.3 percent year-on-year rise in import value this year.

The country's surplus import value in 2001 makes up almost 2.5 percent of its total export earnings.

According to the report, total social investment this year is estimated at VND 150 trillion (USD 10 billion) or 30.8 percent of the country's gross domestic product (GDP) up 16 percent compared to that of 2000.

On foreign investment, the report says total foreign investment is estimated at USD 2.2 billion, a rise of 3.2 percent from 2000. More than 400 foreign-invested projects have been licensed, Combined investment is approximately USD 2.3 billion with 200 operational projects permitted to increase their investment by USD 500 million in 2001. Investment of newly foreign-invested projects has risen 16 percent year-on-year while total registered foreign investment increased almost 17 percent this year.

The Government says that total official development assistance (ODA) pledge is USD 1.8 billion. ODA disbursement in 2001 is estimated at USD 1.7 billion, equivalent to 104 percent of the annual target and up four percent year-on-year. Of the total amount, ODA loans made up USD 1.3 billion while non-refundable aid accounted for USD 370 million. The Japanese Bank for International Cooperation, the World Bank and the Asian Development Bank have provided more than 80 percent of the total.

Total State budget collection this year is expected to surpass the annual target by 13 percent, up 7.4 percent year-on-year.

The report says that State budget overspending is estimated at almost 5 percent of GDP in 2001, a decrease of 1 percent compared to the estimate made early this year. Meanwhile, the consumer price index in the year has increased an estimated one percent.

On education, the report says the country plans to have eight provinces and cities reaching the national standard of universal junior secondary education by the end of this year. During the year, 887,000 technicians were trained. Student enrolment at universities and colleges increased 6 percent while the number of public employees trained and re-trained rose 7 percent.

This year has also seen strong development in job creation, the report notes. About 1.4 million people have been provided with jobs during the year, 100,000 people more than 2000. The national job creation programme alone has provided a total loan of VND 837 billion (USD 55.8 million) to generate and help stabilize jobs for 330,000 people. In addition, about 40,000 workers have been sent to work abroad this year, helping reduce the rate of unemployment in urban areas to 6.3 percent.

The report goes on to say that hunger eradication and poverty reduction activities continue to make remarkable progress. About 300,000 households have escaped from hunger and poverty, reducing the poverty rate (classified under the new poverty line) to 16 percent.

Regarding health care, the report says that the rate of under-five malnourished children has decreased to 32 percent this year from 34 percent last year while the mortality rate of under-one children has been reduced to 34 percent in 2001 from 35 percent in 2000.

The country's population is estimated at 78.7 million this year with a natural growth rate of 1.36 percent.
The fight against drug abuse, HIV infection and other social evils has been strengthened during 2001, the report stresses, adding that the number of drug addicts who have received treatment has increased to over 11 percent this year.--VNA