Deputy Prime Minister Nguyen Sinh Hung made the statement yesterday, November 30, during the Ministry of Finance's online conference with 63 provinces and cities. During the meeting, leaders discussed measures that need to be implemented in 2010.

Hung said that next year, the country planned to reach a Gross Domestic Growth rate of 6.5-7 per cent.

To do so, the ministry must implement measures that will supply sufficient capital for the country's development and construction, he said.

"Next year is not only politically and culturally significant, it's economically important as well. It is an important transitional year for the economic development plan, which will create an impetus for economic growth in coming years," Hung said.

"We are on track to recover while the world economy is still facing difficulties. So, we have to maintain macro-economic stability because our country is still a destination for foreign investors thanks to the social, economic and politic stability," he added.

In order to increase State budget collections, the stock market must be developed into a long-term capital raising channel and the real estate market used as an effective tool to mobilise capital, Hung said.

"The Ministry of Finance has to create favourable conditions for companies and financial institutes to issue bonds, which will help curb inflation and ensure sufficient investments," he added.

He suggested the issuance of VND100 trillion worth of Government bonds next year.

"We have to seek measures to raise funds from enterprises and other economic sectors. We have to boost equitisation, corporate restructuring and encourage the establishment of more private companies, which take part in not only production but also in infrastructure, social projects and services," he said.

In a bid to fulfil the State budget collection and spending tasks, the ministry had initiated several measures, Deputy Minister Nguyen Cong Nghiep said.

"The State capital would be spent on efficient construction projects that are scheduled to be completed in 2010-11, and management tightened to avoid waste."

The ministry would further reform and simplify administration procedures and abolish discrimination among production and investment companies, as well as implement policies that encourage economic sectors to invest in infrastructure, he said.

"MoF would continue to reform financial schemes used in the public services sector, especially in the healthcare and education sectors, in order to attract capital from various sources," Nghiep said.

The participation of various economic sectors in providing public services would provide fair competition, which would help improve the quality and quantity of public services and reduce the pressure on the State, he added.

In his speech at the conference, deputy chairman of Ha Noi People's Committee Hoang Manh Hien said that State budget collection was limited partly due to short-comings in technology.

Therefore, it was necessary to invest in modernising and developing technology and information network systems. With these improved systems, the authorities would be able to better manage State collection sources and avoid losses, he said.

Deputy Minister of Science and Technology Nguyen Quan said that the investment from State budget in developmental science and technology was modest when compared to other countries in the world.

Quan asked for more State investment in this sector and suggested the State to have policies to encourage enterprises to set aside 5 to 15 per cent of their pre-tax profits in order to reinvest in technology.

Provinces also called for more capital allocation from the State budget to invest in public services and infrastructure development projects.

"Last year, the State budget collection reached VND390.65 trillion (US$21 billion), 2 per cent higher than planned.

Source: VietNamNet/Viet Nam News