In a report reviewing the implementation of the country’s socio-economic plan since January, Hung said the growth rate was the highest rate recorded during this period in five years.

Hung listed seven major achievements as the driving forces behind Viet Nam’s economic success:

1. Production values, added values, agriculture and forestry industries and the service sector by 16.9 per cent, 10 per cent, 2.67 per cent and 8.41 per cent, respectively.

2. It was estimated that the total export turnover for Viet Nam was around US$22.45 billion, a jump of 19.4 per cent against the same period last year. Six export lines posted more than $1 billion in earnings each.

The US, the EU and Japan remained the country’s major markets, accounting for more than 60 per cent of export revenues. These markets saw growth between 23 and 28 per cent.

3. It was projected that the State budget collection stands at VND129.9 trillion ($8.13 billion), an increase of 13.7 per cent compared to the same period last year. This figure accounts for 26.3 per cent of the total GDP.

4. The consumer price index grew by 5.2 per cent compared to 4 per cent in 2006 but has been kept under control. The two groups that experienced the highest price hikes were foodstuffs at around 6.8 per cent and housing and construction materials at 8.24 per cent.

5. Social investment totalled roughly VND195 trillion and accounted for 39.5 per cent of GDP.

6. Much progress was recorded in the fields of culture, education, public health and science and technology on top of employment, poverty reduction and disease prevention and control.

7. Administrative reform was made a priority at all levels, especially in terms of implementing the "one stop shop" formula. The anti-corruption campaign received strong support from the general public as well.

Hung also listed seven challenges that need to be addressed in the last half of the year:

1. Though the economic growth rate in the first six months was high, to achieve the annual target of 8.5 per cent by the end of 2007, the rate must reach over 9 per cent every month for the rest of the year.

To attain this goal, central and local Governments and industries and sectors as well as enterprises must make a concentrated effort.

2. There had been a 1 million-tonne drop in oil production that could seriously impact the country’s economic growth rate.

Coupled with the reduction of oil production, the energy, natural gas and cement sectors’ growth of 11.6 per cent, 7.7 per cent and 11.6 per cent, respectively, were still falling short of Viet Nam’s demands.

3. Serious droughts, pesticide use and avian flu had negatively impacted agriculture production and citizens’ health.

4. The disbursement rate of capital investment from the State budget, government bonds and State credits were behind schedule.

5. The import surplus of 30.5 per cent over the first six months of the year was much higher than last year’s figure of 21.3 per cent.

6. The Government must stabilise the price index at a macroeconomic level to stay on par with people’s living conditions.

7. Increasing traffic collisions and problems in the administration and use of vaccines were public concerns. Large groups of people also gathered in Ha Noi and HCM City to ask for prompt and satisfactory settlements to complaints and petitions.

Regarding solutions to make sure the set economic and social targets for 2007 were achieved, the report called for a balance in economic development – an important factor for a high growth rate.

The Government should initiate measures to balance goods, money, export-imports, budget collection and spending.

It would also be imperative to keep the consumers index lower than the economic growth rate, he said.

The Government should focus on facilitating production development and speed up implementation of investment projects, particularly those that were considered the driving force behind the economy, Hung added.

Food safety, traffic accidents and the prevention and control of disease in the agriculture sector on top of mitigating damage from natural disasters were among the priorities the Government should pay due attention to, said the Deputy PM.

Last but not least, the importance of stepping up the fight against corruption, waste and red tape should also be considered.

Source:  Vietnam News.