Deputy Nguyen Huu Dong acknowledged the government’s effective performance in ensuring social welfare, stabilising market prices and investing in remote areas which has built up the people’s trust. However, he proposed that the government introduce more effective and specific solutions to improve the effectiveness of infrastructure construction projects, which are often slow going.

It is necessary to have more pro-active and flexible options to control the consumer price index as spending in 2010 is expected to be higher than in 2009, said Mr Dong.

To overcome any shortcomings, he said that the government should continue to speed up administrative reform, tighten management, increase investment in agriculture, rural areas and the environment, and re-examine the efficiency of national programmes.

Deputy Huynh Van Tiep said that the government has made a lot of progress in forecasting so that it has swiftly introduced the right policies to cope with any negative developments in society. However, he complained that many small- and medium-sized businesses and farmers have not yet had access to subsidised bank loans, environmental pollution has not yet received due attention and capital construction has made slow progress.

Deputy Nguyen Van Nhuong echoed Mr Tiep, saying that the macro-economic balance has revealed several weaknesses, including a high rate of government debt, difficulties in issuing government bonds and a slow disbursement of capital.

Carrying on with the stimulus package
The Minister of Planning and Investment Vo Hong Phuc confirmed that the government’s stimulus packages have taken effect, fuelling the economy to recover and grow steadily. The investment support package has met the immediate needs of infrastructure development, especially the transport and irrigation networks. The tax reduction package has also helped businesses to iron out snags in production. The social welfare package has improved ethnic groups’ standard of living, thus reducing poverty, and meeting their demands for daily necessities while stimulating production. The interest subsidy package has supported many small- and medium-sized businesses in boosting exports and expanding their markets.

He agreed with the deputies that the government should consider whether or not to keep going with the interest subsidy package in the current context. He also echoed the deputies, proposing that the government issue a decree on specific and preferential credit policies and long-term assistance for the agriculture and rural development sector to iron out any snags in implementing the stimulus package.  

The Minister admitted that some of the packages remain slow going, citing cumbersome procedures as the main reason. He confirmed that given their positive results, part of these packages will be carried out at another time.

He said that the government has assigned his ministry to draw up a project on economic restructuring. He said that it is a big project which needs more time to be completed before submitting it to the government and the National Assembly later this year.

Stimulating the domestic market
Minister of Industry and Trade Vu Huy Hoang said that his ministry has been assigned to work out measures to develop the domestic market – a large market of 85.7 million consumers. The government has allocated VND51 billion to the domestic trade promotion programme, aimed at completing mechanisms and policies, enhancing communications and transporting Vietnamese goods to industrial parks, rural and remote areas. The ministry has drawn up the programme and has begun to work on a package to stimulate the domestic market.

According to the minister, the Party’s Political Bureau campaign: Vietnamese people prioritise Vietnamese goods has received strong public support, especially in big cities such as Hanoi, HCM City and Da Nang. The consumers are entitled to require Vietnamese businesses to produce quality products at highly competitive prices. This also means that producers will have to improve the quality of their products, introduce new designs and cut production costs. 

Ensuring social welfare
Minister of Labour, Invalid and Social Affairs Nguyen Thi Kim Ngan said that despite economic difficulties, Vietnam has made every effort to ensure social welfare, which has been acknowledged by the international community.

However, she admitted that poverty reduction is unsteady and the number of people who relapse into poverty remains high. Being aware of this, the government says that poverty reduction must be closely linked to socio-economic development, infrastructure development, afforestation, vocational training and job creation programmes. Therefore, it considers ensuring social welfare a long-term task, with priority given to poverty reduction.

Ms Hang confirmed that the government is keen to ensure social welfare by introducing a number of policies and especially developing a national poverty reduction programme for vulnerable groups in society. As a result, these groups have now got access to basic services such as accommodation, medical check-ups and treatment, education, travel, employment, information and legal aid.

She praised the Vietnam Fatherland Front for its leading role in mobilising thousands of billions of Vietnamese dong to assist the poor. The government has also approved a programme to build more than 77,000 houses for ethnic people living in 62 poor districts across the country before the upcoming lunar New Year festival. To date, 15,000 such houses have been handed over to needy people and 37,000 others are still under construction.