Prime Minister Nguyen Tan Dung set these goals for ministries, sectors and localities at the monthly Cabinet meeting held in Hanoi on July 6-7.

The PM urged everyone to move forward with the government’s stimulus packages, iron out snags in production and business activity to balance the market for farm products, boost exports and expand the domestic market. He also asked them to step up, but keep a close watch on, the disbursement of investment capital for social welfare.

According to the PM, ministries, sectors and localities should work together closely to make economic policies responsive to global market fluctuations.

Cabinet members spent a long time discussing the country’s socio-economic development over the past six months and ideas for meeting remaining targets before the end of the year.

They shared the view that, despite being affected by the global economic crisis, the national economy was not in recession and is showing positive signs of recovery. The implementation of Party and State policies to curb the economic slowdown has brought good initial results and received great support from the public, the business community, socio-political organisations as well as international organisations. Vietnam has steadily overcome difficulties in maintaining production, generating jobs and improving people’s standard of living.  

The implementation of tax relief through reductions, exemptions and extensions of payment deadlines has eased the burden on businesses, helping maintain production, boost exports and stimulate investment and consumption. The consumer price index has increased, but only moderately.

On the other hand, the economy grew at a mere 3.9 percent over the past six months - the lowest rate for this period in recent years. The macro-economic balance was unsteady. It was still difficult to mobilise capital for production and business. Total foreign direct investment (FDI) capital was much lower than in previous years. The economic slowdown led to cuts in production and workforce, adversely affecting employees’ incomes and people’s standard of living.

To meet the adjusted targets for socio-economic development this year, which were recently approved by the National Assembly, the government said it will encourage ministries, sectors and localities to work out new ways to stimulate the economy and rev up production and exports. It will streamline management, speed up the disbursement of capital, and encourage all economic sectors to increase investment in development projects.

Other important goals are to flexibly manage financial and monetary policies, stabilise the macro economy and nip in the bud the possible return of inflation.

Last but not least, the government asked ministries, sectors and localities to better implement social welfare policies to ensure support will come to those most affected by the economic slowdown.