Deputy Prime Minister Nguyen Xuan Phuc delivered a report on the country’s situation in the first five months of the year at the ongoing seventh session of the 13th National Assembly (NA) on June 12.

Deputy Prime Minister Nguyen Xuan Phuc

According to Phuc, thanks to joint efforts by the political system, businesses and people nationwide, the country saw positive changes in socio-economic development. The macro economy was stabilised and the consumer price index (CPI) in May was up only 1.08 percent, the lowest increase in 10 years, and the index is expected to stand at around 5 percent this year.

Policies on social welfare, social assistance and social and unemployment insurance have been implemented. In the first five months, nearly 620,000 new jobs were created, up 3 percent year-on-year. As many as 45,000 workers were sent abroad, representing a surge of 40 percent.

Social order and safety was ensured and defence-security was strengthened while foreign relations and international integration activities were stepped up, he said.

In the time to come, Vietnam ’s socio-economic situation is forecast to see fluctuations in some areas, depending on the developments of Vietnam-China relations and Vietnam ’s policies, he added.

Therefore, the Government has instructed ministries, agencies, localities and businesses to keep a close watch on the situation and actively prepare response measures in order to fulfill yearly socio-economic development targets set by the NA at the highest level.

Regarding the East Sea situation, the Deputy PM said in early May, China illegally placed its oil rig Haiyang Shiyou-981 escorted by a large number of ships and aircraft, in Vietnam’s exclusive economic zone and continental shelf.

Under the direct, regular, continuous and timely instruction of the Politburo, the entire Party, people and army have united in safeguarding national independence, sovereignty and territorial integrity while maintaining a peaceful and stable environment for the country’s sustainable development.

Phuc stated that the government has applied many peaceful measures in line with international law to oppose China and demand it withdraw the rig and escort ships from Vietnam ’s waters.

“We have exhausted all dialogue channels to communicate with the Chinese authorities of different levels, resolutely requesting China respect international law and Vietnam ’s sovereignty,” he said.

Vietnam’s fisheries surveillance and coast guard forces and fishermen have bravely stayed at sea to protect the sacred national sovereignty, he said, adding that domestic and international media has promptly and accurately updated on China’s illegal and inhumane acts that included the sinking of a Vietnamese fishing boat with ten fishermen on board while it was operating in Vietnam’s waters.

Many governments, foreign organisations and scholars have raised their voice in support of justice and Vietnam ’s response, and expressed deep concern about the tension, strongly condemning China ’s wrongdoing.

The Vietnamese Government and people sincerely thank the international community and wish to receive its continued support, he stressed.

Deputy PM Phuc gave explaination to the recent disturbances that erupted in some localities during workers’ rallies against China ’s actions. He said some people were incited to destroy the property of foreign firms, as well as some belonging to national businesses, and resist on-duty law enforcement officials, disrupting social order and business activities.

He said the Government directed the authorised agencies and localities to promptly stabilise the situation and strictly publish law breakers. They also took practical measures to support affected businesses and workers, he said, adding that all enterprises have to date resumed their operations.

The ministries, agencies and localities have been urged to prevent such cases from reoccurring by ensuring security and safety for foreign businesses and workers in Vietnam , creating a good investment and business environment.

Regarding economic, trade, investment and tourism ties with China , he said this is an equal and mutually beneficial relationship in the market economy and Vietnam ’s consistent policy is to strengthen effective cooperation with China in these fields, both bilaterally and multilaterally.

“The current context requires us to step up economic restructuring, diversify markets, investment sources and partners, and avoid overdependence on a certain market on a partner. This way we can create a firm foundation for the country’s stable and sustainable development,” he noted.

On agricultural and rural development, the Deputy PM said that despite numerous difficulties, the agricultural sector has still seen steady growth, actively contributing to the country’s socio-economic stability.

However, he pointed out some shortcomings in the field, such as slow agricultural restructuring and new-style rural building and some difficulties in selling farm produce.

In the coming time, the Government will deploy polices to attract investment in rural areas, he added.

Phuc stressed the importance of developing the fisheries sector, especially offshore catching activities, saying that they not only bring in economic benefits but also represent a civil presence at sea, contributing to safeguarding the national sovereignty over seas and islands. He emphasised the need to equip fishermen better and improve their communications with other civil ships to help ensure national defence and security.

Fishing activities are providing jobs for about 1 million fishermen in 28 coastal provinces. They boast a fleet of 120,000 ships, including nearly 30,000 offshore fishing ones.

However, the fisheries sector still faces many difficulties and challenges, especially maritime security and safety.

To help them overcome these difficulties, the Prime Minister has requested the State Bank of Vietnam allocate 10 trillion VND in preferential loans for fishermen.

The Government has also ordered the effective implementation of a 16 billion VND package assisting fishermen to build offshore fishing ships and equipping fisheries surveillance and coast guard forces.

Following the report presentation, Deputy PM Phuc engaged in a Q&A session with NA deputies to make them understand more clearly about the issues mentioned in his report.

Concluding the session, NA Chairman Nguyen Sinh Hung spoke highly of the Government, ministries and localities’ efforts in stabilising the macro economy and ensuring social welfare.

Regarding the public debt issue, he said it is being threatened by the debt structure and imbalance in payment sources. He stressed the need to review and adjust public debts in order to ensure the national financial security and safety and protect the macro economy.