Judging from the socio-economic situation in 2007 and prospects for 2008, Vietnam is smoothly implementing targets and tasks set by the National Assembly for 2007. However, the national economy will continue to grapple with unfavorable factors, which require relevant agencies, localities and enterprises to make concentrated efforts to reach the set targets.

One of the key solutions is to boost administrative reform, create a favourable environment for investment and business activities of enterprises in different economic sectors. NA deputies as well as voters across the country have highlighted the government’s efforts in administrative reform, and affirmed the government’s determination to fulfill the targets. Nguyen Thi Nguyet Huong, a NA deputy from Hanoi said the government’s new apparatus has been operating well since the first session of the 12^th NA in July 2007. After the session, ministries have improved their mandates and organizational structure to help 64 cities and provinces in the country operate smoothly. With such initial results, the government can fulfill its set socio-economic goals.

Regarding local voters’ aspirations a NA deputy from central Nghe An province said voters are concerned about the current high consumer price index (CPI) which has a great impact on their lives. Despite the government’s recent efforts, the CPI keeps rising at a alarming rate. Voters have recommended the government to take effective measures to control price increases, especially in production materials.

In the context of soaring consumer prices, the government has tried to reduce the volume of cash in circulation in an effort to stabilize prices. However, to ensure the stable growth of the national economy and the quality of growth, it is necessary to pay attention to the agricultural sector, as living conditions of some farmers, especially those who live in remote, mountainous and border areas remain very difficult.

This year Vietnam has achieved the highest economic growth in comparison with previous years. However, there is still growing concern that consumer price hikes may give rise to inflation. In addition, the State budget overspending rate has stayed rather high for many years as measures are not strong enough to prevent tax fraud and misuse of the State budget. Analyzing and forecasting work has not met requirements for the rapid and sustainable development of the market economy at present. These issues should be addressed to boost economic development.

Regarding measures to manage the State budget effectively, Nguyen Thi Bach Mai, a NA deputy from southern Tay Ninh province said that Vietnam now has the State budget law, so the Government should adopt concrete measures to control inflation, increase investment in socio-economic development and pay more attention to thrift practice and anti-wastefulness.

In 2007, Vietnam has gained significant achievements in various fields, and people’s living conditions have improved remarkably. Active contributions together with the dynamic development and creativeness of people and businesses from all economic sectors have provided fresh impetus for national economic development. Nevertheless, all people should take part in overcoming challenges and grasping new opportunities to achieve sustainable development. This year’s achievements will serve as a firm foundation for the country to realize its socio-economic development plans for 2008.