A Government report reviewing the country’s socio-economic performance in 2007-2011 was delivered at the ninth and final meeting of the 12th National Assembly in Hanoi  on Monday.

Prime Minister Nguyen Tan Dung said the Government had focused on managing society and the economy by law based on market rules, and decreasing administrative intervention. “The business environment has been transparent, creating confidence in investors and encouraging investment,” he said.

The Government has focused on building up an economy where there are multiple sectors ranging from state to private and multiple forms of ownership, an improved legal system and simplified administrative procedures.

This effort has nurtured the growth of the private sector which has expanded two-fold and increased capital six times, he said, adding 4,000 new cooperatives had been established. By late last year, Vietnam had seen around 544,000 private enterprises set up.

In 2006-2010, private sector investment accounted for 34.8% of the country’s total, creating 49% of non-agricultural jobs in the countryside, and contributing 45% of the country’s gross domestic product.

In addition, the Government has continued restructuring State-owned enterprises with all 1,200 businesses in the state sector converted to operate under the Enterprise Law, which also governs the private sector.

Concerning economic governance, Dung admitted, the Government’s lack of previous experiences has led to poor management of issues like trade deficit, state budget deficit, and inflation.

Given the current difficult situation, the National Assembly should adjust socio-economic targets to suit the situation by appointing the Government to adjust some specific targets, take responsibility on the duties and report to the National Assembly at the next meeting, he added.

On the first day of the National Assembly, Deputy Prime Minister Nguyen Sinh Hung reported the country’s growth in the first quarter of this year was expected at 5.5%, a slightly decrease from the same period last year.

Exports grew strongly with expected export revenue of US$18.8 billion, increasing 29.7% year-on-year and agricultural products strongly increasing in terms of output and prices, especially in rice, coffee, rubber, and cashew.

In the report, Hung said last year saw GDP growth of 6.78%, higher than the target of 6.5% given by the National Assembly. Export revenue reached US$72.3 billion, of which agricultural exports kept on an upward trend with US$20 billion.

The trade deficit was US$12.6 billion, accounting for 17.5% of export revenue, lower than the initial plan.

Total investment by the country last year was over VND830 trillion, accounting for 41.9% of GDP, higher than the target of 39.5% given by the National Assembly.

Private sector investment excluding foreign investments accounted for 36.1%, rising 24.7% from the previous year.

Total ODA disbursement in 2010 was US$3.5 billion, rising 44.2% from the plan and new ODA capital signed was US$3.2 billion. Government loans accounted for 44.1% GDP while the national loans accounted for 42.2% of GDP, which was still under control according to Hung.

By 2010, people’s income increased by 35% compared to 2006. GDP per capita of Vietnam in 2010 was US$1,268. The National Assembly meeting will close on March 29.

Source: Saigon Times.