All sectors, ministries and localities nation-wide have made great efforts to overcome difficulties and world economic impacts, recording positive results in curbing inflation, stabilising the macro economy, ensuring social security and maintaining economic growth, according to the Politburo conclusion issued last week.

However, the country still faces many challenges, including lower economic growth (6.5 per cent) in comparison with the target of 7 per cent, a high consumer price index and difficulties in investment, production and businesses due to the increasing cost of materials, a lack of capital and the fluctuating exchange rate.

The financial and stock markets remain unstable and the living conditions of the people, particularly those in calamity-stricken, minority-inhabited and poor areas, still face many difficulties.

These problems were mainly driven by the decline of the US economy, the world economic difficulties and spiralling price rises of many kinds of commodities, materials and fuels in the world market as well as a lack of action plans and synchronous guidance of local authorities in implementing their tasks and ineffective information campaigns to encourage the Party, State and the whole people to overcome difficulties.

In order to curb inflation and stabilise the macro economy in the last half of this year, the Politburo pointed to the need to continue implementing the monetary tightening policies, adjust the exchange rate in line with the market supply and demand to boost export; prevent speculation; manage operations of commercial banks and tighten control over the establishment of new commercial banks to improve the effectiveness of the banking system.

The Politburo also asked the State-owned sector, businesses and the whole society to curb expenses, urging localities to improve the efficiency of investment capital from the State budget.

It is also necessary to keep an eye on the supply and demand of key commodities to meet production, consumption and export needs, regulate the supply and demand of commodities among regions, tighten price control and take comprehensive measures to counter inflation while preventing speculation and trafficking.

The Politburo urged related ministries and agencies to effectively implement measures to boost export; cut down imports to reduce the trade deficit, while adopting import and special consumption taxes and non-tariff and monetary policies in line with international commitments.

In order to keep stable growth and fulfil the growth target, the Politburo pointed to the need to change and stamp out inappropriate regulations which hinder investment, production and trade activities; create favourable conditions to develop potential industrial and services sectors and give priority to implement measures to boost the production of agro-forestry and fishery.

It is also necessary to meet capital demand for production of products of great demand of local and foreign markets; take measures to hasten the disbursement of capital mobilised from the State budget and government bonds as well as foreign direct investment (FDI) and official development assistance (ODA) and earmark capital to help complete key projects.

Adopting flexible tax policies in support of production and trade of businesses, particularly small - and medium-businesses; and speeding up the equitisation and restructure of State-owned businesses are also needed, according to the Politburo.

Regarding social security, the Politburo urged localities, ministries and agencies to simplify procedures and effectively implement policies on ensuring social security for the poor, ethnic minority people as well as those in poverty-hit areas and low-income labourers.

It is also essential to speed up the implementation of programmes in support of the poor; handle social problems, including the adjustment of allowance provision for paid workers and disadvantaged people; and improve works relating to epidemic and natural disaster forecast, prevention and control, particularly in the central and mountainous regions to mitigate damage to the locals.

Concerning administrative reform and anti-corruption, the Politburo conclusion says it is crucial to implement action programmes on speeding up administrative reforms to improve State management efficiency; effectively implement the Party resolution on anti-corruption, focusing on handling serious corruption cases and beef up the fight against social evils.

The Politburo also asked related ministries, agencies and localities to increase information dissemination activities to raise the awareness of the whole population of the country's socio-economic situation, helping to build trust and tap advantages to overcome difficulties.

It added that press agencies needed to supply timely and accurate information on the Party and State policies and take measures to fight against negative propoganda by hostile forces.

Based on the above-mentioned conclusions of the Politburo, all ministries, agencies and localities would need to take concrete measure to overcome difficulties to fulfil the yearly target and the five-year development plan during the 2006-10 period.
Source: Viet Nam News