VietNamNet Bridge – The second session of the 13th National Assembly opened in Ha Noi yesterday, Oct 20, with controlling inflation, stabilising the macro economy and furthering social development earmarked as top priorities.

NA second session opens in Hanoi

In his speech, broadcast live on national television, NA Chairman Nguyen Sinh Hung said that the entire political system, business community and ordinary citizens had helped the nation achieve important economic progress this year.

However, Hung called for "strong determination and proper measures to realise set targets".

Similar tasks were highlighted in the Government's report on the socio-economic situation of 2011 and targets for 2011 - 2015.

According to the report, presented by Prime Minister Nguyen Tan Dung, concerted measures, namely containing inflation, monitoring price and regulating supply and demand, have helped gradually reduce the Consumer Price Index (CPI) over the past five months.

CPI in the first nine months rose by 16.63 per cent, as compared with December 2010, and is forecast to be up by about 18 per cent for the entire year.

Production and business had been sustained, with export increased and import brought under control.

The trade deficit was lowered to an estimated US$10 billion this year, by a 10.5 per cent rate of export turnover.

Dung also said that despite price hikes, constant epidemics and natural disasters, the Government had prioritised resources to support anti-poverty programmes, job generation and other social initiatives.

Certain achievements were reported in health care, education, science and technology, administrative reform and anti-corruption work. The Prime Minister also presented key targets and measures to drive the national economy in the short and long term, though he said huge difficulties would remain due to the "complicated evolution" of the world's economy and the shortcomings of the domestic situation.

Dung said that the country would aim to drive inflation below 10 per cent next year and 5-7 per cent for the following years.

Economic growth should be maintained at "a reasonable rate", with this year's GDP estimated at 6 per cent, 6-6.5 per cent next year and 7 per cent for 2011-15, he said.

State budget overspending should be cut to below 4.8 per cent in 2012, from 4.9 per cent this year, and should fall to 4.5 per cent in the years to come, while public debt should be around 60-65 per cent of GDP by 2015.

Trade gap

Next year's total export turnover is estimated to go up 12-13 per cent from this year's figure, of which the trade gap will make up about 12 per cent. The latter figure must be lowered to 10 per cent by 2015.

Among the measures, Dung said "stabilising the macro economy must be defined as the crucial way to accomplish the tasks set for 2011-15". Specific measures include curbing inflation, stabilising market prices and striving to cut down State budget overspending.

Dung said resources must be gathered in 2012 to restructure investment in three key areas: public investment, State-owned enterprises (SOEs), and financial and monetary systems.

In terms of restructuring SOEs, he said comprehensive review must be performed on the operating efficiency of economic groups and corporations.

State-owned groups and corporations should only focus on major business sectors, and divestment should be resolvedly made at enterprises without the State's interference. Measures would be worked out for those running at a loss, Dung said.

Additionally, business outcomes of SOEs would be publicised to level the playing field with businesses in other economic sectors.

In terms of the banking system, the State would cut down the number of weak banks and credit organisations, raise credit quality and develop banking services. Control would be tightened on overdue debt, liquidity and the commercial banking system security would be ensured, and dollarisation would be curbed.

Other measures put forth were aiding enterprises to develop their business and expand the market, guaranteeing social security and firmly defending territorial sovereignty.

Chairman of NA's Economic Committee Nguyen Van Giau delivered a review of the Government's report on socio-economic progress in the previous four years and its plan for the next five.

Regarding past progress, Giau said the Economic Committee basically agreed with the Government's report. For example, average economic growth was achieved at 7 per cent, which was lower than the target but fairly high compared to that in other countries in the context of the global financial crisis and economic downturn.

However, Giau pointed out some drawbacks facing the national economy. The country was included in the 40 per cent of world economies cited as having low competitiveness, while the level of technology was three to four generations behind developed industries.

Evaluate issues

He cited a number of issues that the committee suggested were in need of "in-depth analysis and evaluation". They included the lack of attention to environmental targets; reduction in economic efficiency; rampant growth of industrial parks, urban areas, sea ports and airports; devaluation of the dong and the use of obsolete technologies among some Foreign Direct Investment (FDI) enterprises.

Giau also stressed social concerns, such as serious crime, the rise in violence and traffic accidents, low-quality education and training, hospital overload and unresolved environmental pollution.

Though agreeing with most of socio-economic targets set for 2011-15, the committee suggested a few amendments to the plan.

In terms of CPI, Giau said "single-digit CPI must be attained in 2012" in order to raise the public faith, stabilise the macro economy and increase the pace of economic growth in the years to come.

"CPI in 2013 and 2014 must be controlled at below 6-7 per cent, and lowered further to 5-7 per cent in 2015," he added.

He also said the trade gap, targeted at $15 billion by 2015, remained high and State budget overspending should be lower than 4.5 per cent of GDP.

The economic committee also agreed to keep public debt from exceeding 65 per cent of GDP by 2015, and to hold Governmental debt under 55 per cent of GDP and national debt under 50 per cent of GDP, while also "striving to bring them down when possible".

The current public debt mounted to 58.9 per cent of GDP.

"However, it's necessary to properly define a debt structure and closely calculate the use of loans so as to encourage socio-economic efficiency.

"A detailed plan should be worked out to cut down public debt from 2016," Giau proposed.

The report put forward some measures to reach those targets.

Also yesterday, 500 lawmakers heard reports on the ideas and petitions of voters nationwide, including the national plan for land use to 2020, the implementation of the State budget in 2011, budget estimates and allocation for 2012, the programme on the use of Government bonds for 2011-15 and the national target programme for the same period.

Working until November 26, NA deputies will pass five laws and one resolution, and discuss a wide range of issues.

VietNamNet/Viet Nam News