He noted that despite the global economic crisis and unpredictable price fluctuations, the country achieved initial results in curbing inflation, stabilizing the macro-economy and ensuring social welfare. It obtained a GDP growth rate of 6.23 percent, with agro-forestry and fishery production increasing by 5.6 percent, industrial production by 14.6 percent, the export value reaching US$83 billion and foreign investment disbursement exceeding US$10 billion.
However, he pointed out the country’s weaknesses, including slow economic forecasting and sluggish implementation of policies, as well as cumbersome administrative procedures and poor coordination between ministries.
He said that the consumer price index rose above 20 percent and the people faced many difficulties. The Government’s efforts to accelerate administrative reform and practise failed to produce the desired result.
In 2009 Vietnam must take advantage of opportunities created by cheap prices while concentrating on disbursing investment capital for infrastructure development, updating technology and providing capital stimulus for businesses to boost production and exports, said the PM.
He asked ministries, sectors and localities to make a greater effort to prevent economic decline, maintain a GDP growth rate of 6.5 percent and ensure social welfare.
Cabinet members discussed capital sources for stimulating investment which is estimated at US$17 billion next year. About half of this amount will be spent on development, representing an increase of 50 percent compared to 2008.
They suggested that the Government use the US$1 billion economic stimulus package to help small- and medium-sized businesses, especially those engaged in processing agricultural products and providing jobs for labourers, particularly those involved in building rural infrastructure.
At the meeting, the PM asked ministries, sectors, cities and provinces to work harder to quickly and effectively disburse development investment capital. He said that the sum should be used to support 96 percent of small- and medium-sized companies and households by providing loans with lower interest rates to help them maintain production.
The Government will spend more than VND3 trillion of its budget on assisting 61 poorest districts to implement social welfare policies, said Mr Dung.
Cabinet members said it is necessary to give unbiased assessment of the pros and cons in building increasingly large economic corporations, which are expected to contribute 40 percent of the country’s GDP. They said that in 2008 several corporations did not use capital effectively and had low productivity and limited managerial success.
The same day, the Government Office held a press conference to review this year’s economic growth.