Despite positive progress in its economic development plan, the national economy was still facing challenges on its way to reaching the set socio-economic targets, PM Dung said at the Government’s monthly meeting on August 31.

Government officials gather every month to review the results of socio-economic performance and discuss measures to stabilise the macroeconomics, control inflation and ensure social security for the rest of the year.

The Ministry of Planning and Investment reported that in the first eight months of the year, the industrial production continued to grow by 15.2 percent compared to the same period last year, and the trade gap slightly decreased.

Meanwhile, the August’s consumer price index slightly increased by 0.23 percent over the previous month, the ministry said.

Good co-ordination among sectors and localities helped agriculture improve and kept pandemics under control despite the negative impact of floods and storms.

Nevertheless, the Government pointed out shortcomings of the economy, which need to be overcome.

Worthy of note was the negative impact of the global market that continued to send prices rising, especially in the last quarter of the year, Government officials said.

Firms and enterprises were still ineffective in mobilising capital sources as bank loan interest rates remained high. Epidemic diseases were at a critical point and still threatened to seriously affect production and people’s lives.

The officials also discussed ways to effectively implement the socio-economic development plan for 2011 and in the next five years.

One of the most discussed issues was how to develop the electricity industry.

The officials agreed on a plan to introduce an open and favourable mechanism for electricity production. The Government would favour the socialisation of the industry, calling on the involvement and investment of all economic sectors.

While implementing hydroelectric power projects, the Government will boost the development of natural-energy generated power programmes, they said.

PM Dung asked the Ministry of Industry and Trade to focus on producing electricity to avoid shortages of power, with Government playing the key role in the field with the support of all sectors. He asked the Government to set the economic growth for the next year at 7.5 percent.

To ensure GDP growth of 6.5-7 percent this year, the consumer price index must be maintained at 7 percent, and the excess of imports over exports must be kept below 18 percent.

The government leader spoke of the need to support the key programmes and a new rural development plan in the next five years.

During discussions of the 2011-15 economic plan, Government officials described the guarantee of social security as a key factor, suggesting that ministries and sectors draw up appropriate plans for sustainable development, including effective measures to respond to climate change. They also expressed their resolve to push through administrative reform and equitisation in State-run enterprises.