The forecast is based on production and business activity in the first two months of 2010, taking into account both favourable conditions (like the current global economic recovery) and anticipated difficulties.

The production of the agriculture, forestry, and seafood sectors is expected to rise 5.6-5.8 percent, while the industrial sector may see an increase of 13.5-13.8 percent. For total revenues from retail sales and services, the GSO put a jump at about 24 percent.

Domestic production is bouncing back, leading to a sharp rise in materials imports. Experts estimated the trade deficit at some US$2.6 billion in the first quarter.

In its report, the GSO proposed some solutions to fulfil the first quarter’s production and business plans, creating a strong momentum for the next quarter. These include flexible financial and monetary policies and strict control of markets to curb possible high inflation triggered by rising prices of electricity, petrol and food after Tet.

The GSO also suggested that sectors step up production and business activities in order to churn out more commodities with higher quality for domestic consumption and export. It emphasizes the need to devise a plan for developing support industries.

Ministries and sectors were advised to diversify export markets to increase export revenues, use all available domestic materials to avoid dependence on foreign materials, and invest heavily in product design to make products more attractive and marketable.

In the field of agriculture, the GSO recommended greater efforts to fight epidemics in plants, cattle, and poultry.