The goal was announced at a monthly meeting in Hanoi on October 29-30. Prime Minister Nguyen Tan Dung and the cabinet members focused their discussion on the economic situation in October and the past 10 months.

Positive effects of economic stimulus policies

The cabinet agreed that in the past ten months of this year the macro-economy has been maintained, inflation has been controlled and State budget expenditures and international payments have all been covered.

All economic stimulus policies have achieved practical results. PM Dung said this is a comprehensive policy to help the economy recover and increase. GDP increased by 3.14 percent in the first quarter, 4.46 percent in the second quarter, 5.76 percent in the third quarter and is expected to rise by 6.8 percent in the fourth quarter, reaching 5.2 percent for the whole year.

The cabinet said the progress can be seen most clearly in industrial production. After a sharp decline in January (down 4.4 percent), the industrial sector has grown steadily for the past nine months. Altogether industrial production has risen by 7 percent in the 10 months.

With positive signals from domestic and foreign markets, trade and service activities continue to achieve stable growth. Total retail and service revenue have increased by 18 percent compared to the same period last year. Exports in October were up 4.5 percent while the consumer price index rose by only 0.37 percent in October, 0.62 percent less than in September. Investment capital from the State Budget disbursed around VND14.6 trillion, accounting for 10.1 percent of this year’s projection.

In October, around 140,000 people found jobs, bringing the total number of people getting jobs since early this year to nearly 1.24 million, 72.76 percent of the plan.

Implementing adjusted economic stimulus policies

Prime Minister Nguyen Tan Dung emphasised that the general socio-economic goal in the remaining months of this year is to maintain the growth rate, stabilize the macro-economy and reach set targets.

To fulfill this goal, PM Dung urged relevant agencies to manage financial and monetary policies flexibly and implement export policy effectively.

Mr. Dung agreed to continue stimulus measures into 2010. However, the measures need adjusting to ensure a sustainable recovery.

For example, the 4 percent interest aid package for buying agricultural machines and equipment will continue until December 31, 2010 and the interest rate can be reduced to fit the situation. The 4 percent interest aid package to help businesses will be extended to the first quarter of 2010, but availability will be restricted; businesses with many workers and those producing goods for export will be given priority.

Social security should be safeguarded

The PM said the state budget for investment and development should be kept stable since it has such great impact on society.

To reduce the deficit, Mr. Dung said, we should try to increase revenues  and eliminate unnecessary expenditure items; we should not reduce spending for social security.

The PM asked the Ministry of Education and Training to improve state management in education and issue a standard for educational quality. He asked relevant ministries, agencies and localities to implement the second phase of the 30 project to cut administrative procedures by 30 percent.

Mr. Dung also asked ministries and agencies to continue their anti-corruption work.