In his report delivered at the last session of the National Assembly in Hanoi on March 20, Mr Dung said in the past five years, the national economy developed steadily; progress was made in social and cultural activities, external relations and international economic integration; and national defence, security and socio-political stability was maintained. 

Perfecting the market economy institution

Mr Dung said that during the last working term (2002-2007), the Government instructed ministries and agencies to finalise the legal system concerning the establishment, development and execution of the market economy. The Government submitted to the Party Central Committee and the National Assembly many socio-economic development programmes and draft laws and ordinances, and at the same time formulated a system of law-regulated documents detailing the implementation of approved laws and ordinances with the aim of creating a complete and transparent business and investment environment. New legal documents helped establish equal business relations, win investors’ trust and mobilise many domestic and foreign resources for national development.

In addition to perfecting the legal system, Mr Dung said, the Government focused on measures to establish and operate markets synchronously and smoothly. The commodity, services and stock markets developed rapidly involving investors from different economic sectors, with the financial market gradually taking shape. Total retail of commodities and services turnover in the 2002-2006 period increased by nearly 19 percent annually, notably by 21 percent in 2006. The consumer price index in the 2001-2005 period rose 5.1 percent annually.

As a result of proper solutions, the country’s macro balance became healthier: food security was ensured, domestic currency was stabilised, budget overspending and the consumer price index were kept under control, international payment was kept in balance, foreign currency reserves increased and national debts were maintained in safe limits.

The Government also accelerated the reorganisation, renovation and development of State-owned enterprises (SOEs), particularly the equitisation of SOEs and State corporations in line with the market economy mechanism to increase their operation efficiency and competitive capacity. The Government also carried out the transformation, purchase, leasing, dissolution and mergence of enterprises which had operated inefficiently.

Mr Dung quoted the latest statistics as saying between 2002-2006, approximately 170,000 enterprises registered to operate on the market, representing an annual increase of 17 percent. Private investments made up nearly one third of total social investment, providing 49 percent of non-agricultural jobs in rural areas. Every year, small and medium-sized enterprises attracted more than 90 percent of new recruited workers. Private, cooperative and households economies made up 45 percent of national GDP. In 2006, SOEs achieved a growth rate of 12 percent and contributed 39 percent of GDP and 50 percent of export value.

Mr Dung said that the Government made every effort to renew policies and improve the investment environment and abolish unfair treatment to mobilise recourses from all economic sectors and attract foreign investments. It instructed ministries and agencies to further improve the investment environment to lure foreign direct investment (FDI) capital. In the 2001-2005 period, total registered FDI capital hit nearly US$21 billion, of which more than US$14 billion was disbursed, surpassing the set target by 30 percent and making up 17 percent of total social investment. Official development assistance (ODA) also increased considerably, reaching more than US$11 billion.

The rapid increase in social investment capital helped boost productivity, improve infrastructure facilities, restructure the economic mechanism, attract new technology and create more jobs, thereby making important contributions to raising economic growth and budget revenue.    

Expanding relations, actively integrating into global economy

APEC 14 - one of Vietnam's important political events in 2006

In the last working term, Mr Dung said the Government actively promoted external relations bilaterally and multilaterally in such areas as politics, economy-trade, culture and national defence and security, in close connection with international activities of the Party, the State President, the National Assembly and people’s organisations.

External relations activities aim to further consolidate and create a fabourable international environment for national construction and defence, strengthen external economic relations, integrate deeper into the regional and world economies and further elevate the country’s position.

Between 2002-2006, the number of the poor fell 2 percent annually, which had been acknowledged by the international community. Each year, more than 1.5 million jobs were created and the unemployment rate dropped significantly. Most communes and wards were provided with medical stations, bookstores, reading rooms, post offices and cultural houses. Healthcare, telecommunications, water and electricity supply and rural transport services were also improved significantly.    

Boosting administrative reform, anti-coruption fight

Prime Minister Nguyen Tan Dung said the Government paid special attention to the fight against corruption and wastefulness. The law system, mechanism and policies on anti-corruption and wastefulness were being put in place. The Government directly dealt with corruption and wastefulness cases, particularly big economic corruption cases in 2006 which captured great attention from the public.

He stressed that the Government successfully directed national defence and security work to ensure social order. Many dark schemes by hostile forces were detected and foiled to ensure absolute security for the country’s important political and external-related events, including the ASEM-5 and the 14^th APEC Meeting. Crimes, particularly criminal offences were put under control and many groups of dangerous criminals were broken.

PM Dung noted that great efforts were made to help quickly settle disputes and conflicts among people, particularly prolonged and complicated cases of denunciations and complaints to ensure the interests of businesses and citizens.

However, Prime Minister Dung also pointed out the Government’s weaknesses in its past working term. The Government’s management of building a market economic institution is still far from meeting demand, the quality of development and the competitive edge of the economy, as well as the quality of social and cultural activities remain low, the results of administrative reform are not as expected while corruption and wastefulness are not yet repulsed.

Prime Minister Nguyen Tan Dung expressed his hope that the Government in the next working term will develop its gained results to overcome shortcomings and continue to renew itself comprehensively in both management and direction, promote the strengths of the whole nation, and mobilize all resources to successfully implement the resolutions of the 10^th National Party Congress, to bring the country out of the underdeveloped-country status, and to achieve the goal of rich people, a strong country, and an equal, democratic and civilized society.

Also in the afternoon, the National Assembly listened to reports by heads of the Supreme People’s Court and the Supreme People’s Procuracy in the 2002-2007 term.

On March 21, the National Assembly will listen to a statement on the completion of the Ba Ria-Vung Tau Gas-Electricity-Fertilizer project, a report on the supervision of the project, and a statement on the building of the National Assembly Hall.