To promote favourable conditions and minimise negative impacts of difficulties, in the beginning of the year, the Government, authorities and sectors have deployed sets of concrete and integrated measures. As a result, the economy obtained a pretty high growth rate, the socio-economic situation was more positive by the year's end. The GDP growth rate was 7.15% in the first quarter, 7.53% in the second quarter, 8.7% in the third quarter and 8.96% in the fourth quarter. On average, the annual growth rate is 8.17%, higher the set target of 8%.

Although, agricultural, forestry and fishery production was heavily affected by floods, food production is estimated at 39.6 million tonnes, equivalent to the 2005 figure.

Industrial production remains high growth rate. It is estimated that the industrial production value increase 17% compared to 2005. The service sector also sees a rapid increase with 8.3%.

Big balances of the economy are stable. The State budget balances are positive. Budge collection increase, ensuring essential needs and economic development and social insurance. It is estimated that the total State budget collection will be 110.2% as the forecast. This not only shows the positive growth and efficiency of the economy but also improve the payment capability.

In 2006, thousands of works were completed and put into use. Thousands of other works have been started to be built.

Balances between demand and supply, monetary-goods have been ensured. Although prices of goods in the world market are unstable, domestic market is stable. In general, consumption price increases by only 6.6%, much lower that the economic growth rate and the price rise rate.

External economic activities have seen positive developments and gained important results. The total foreign trade transaction is US $84 billion, an increase of 22.5% as compared to 2005. The export turnover is US $39.9 billion, an increase of 22.1%, while the import turnover is US $44.4 billion, an increase of 20.1%. One of the main reasons for the sharp rise of export turnover is attributable to Vietnam's active exploration and expansion of market. Export turnover to markets such as US, Japan, Australia, China, Singapore, etc. has quickly increased. In addition, Vietnam has opened new markets in Africa.

Foreign direct investment saw a significant increase. Since early this year to December 18, as many as 797 projects have been licensed with a total registered capital of US $7.57 billion.

Meanwhile, at the consultative group meeting, which was held in Hanoi on December 2006, international community pledged to provide a record amount of official development aid (ODA) of US $4.45 billion, more than US $700 million compared to the figure pledged at the previous 2005 CG meeting.

In 2006, there were nearly 3.6 million foreign visitors to Vietnam, an increase of 3% compared to 2005.

So far, Vietnam has set up diplomatic ties with 168 countries and trade relations with 165 countries and territories.

In 2006, Vietnam also enjoy social stability and people's living conditions have improved. It is estimated that in 2006, more jobs were created for 1.65 million people. The workers' income are stable. The living conditions of people have been improved. The rate of poor families have down to 22% in 2005 to 19%. The country has also paid attention to social policy beneficiaries.

The overall socio-economic development of Vietnam has been affirmed in the UNDP's human development index report 2006, in which Vietnam is ranked 109 out of 177 countries.

In addition to the significant achievements, Vietnam's economy still faces short-comings, especially quality of growth and competition capability. In the social fields, many limits and short-comings have slowly been dealt with. The administrative procedures remain complicated. The social evils have not efficiently been dealt with. Urban management is not good; traffic accidents are still serious, etc.

Vietnam has set a high socio-economic targets for 2007. To fulfill the objectives, sectors and authorities should promptly deploy solutions to boost production, business, stablise price and market and effectively deal with social problems. The socio-economic achievements in 2006 in particular and in the period of renovation are the material and spiritual pre-conditions for Vietnam to overcome challenges and firmly advance on the road of renovation and international economic integration.

Source: Nhan Dan