Vietnam Law & Legal Forum Magazine is your gateway to the law of Vietnam

Official Gazette

Tuesday, June 6, 2023

Most 2007 targets to be fulfilled or overfulfilled, Government says

Updated: 10:54’ - 02/11/2007

Most socio-economic development targets set for 2007 will be fulfilled or overfulfilled, according to a government report presented at the ongoing 2nd session of the XIIth National Assembly.

The expected economic growth rate of the whole year is around 8.5% (planned 8.2-8.5%), the highest in 10 years, with agriculture, forestry and fisheries up by 3.5%; industries and construction 10.6%; and services 8.7%.

With this high growth rate, the country is likely to meet many targets set for 2010 right next year, says the report.

In 2007, total mobilized investment capital is expected to reach VND 464.5 trillion, up by 16.4% over 2006 and accounting for 40.6% of GDP, in which state capital will increase by 17.5%; ODA capital 12%; foreign direct investment 17.1%; and private sector 19.5%.

Macro-economic balances have been ensured. Total state budget revenues exceed the planned target. Taxes and charges collected into the state budget account for 23.4% of GDP. Foreign currency reserves have also increased, meeting foreign currency demands and stabilizing the foreign exchange market. Foreign debt ratios are within permitted safety limits.

The poor household rate is now 14.7% (the planned target is 16%).

Administrative reform has been actively carried out along the line of decentralization of powers, simplification of administrative formalities, and application of the “one-stop-shop” mechanism. The Government apparatus has been further streamlined.

Anti-corruption, thrift practice and waste combat efforts have been intensified.

The political and social situation continues to be stable. Political security, social order and safety, and crime prevention combat activities have been enhanced, and national defense and security firmly preserved.

External relations have been further expanded. The country’s international status has been increasingly heightened.

The government report also identifies a number of weaknesses.

First, the productivity, quality and competitiveness of products and the entire economy remain low, investment efficiency poor and production costs high. Power generation and supply still fails to meet development demands. Processing industries still account for a large proportion and subsidiaries industries show insignificant progresses. Economic restructuring remains slow.

Second, some macro balances are not really steady. State budget deficit is relatively high, though still within the permitted limit, and shows no signs of improvement. In 2007, trade deficit is estimated at 18.75% of total export value. The consumer price index increased by 7.32% in the first nine months.

Third, investment capital has not yet been effectively mobilized and utilized. Private sector investment and foreign direct investment have not yet been fully tapped. ODA capital disbursement remains slow. Inadequate economic institutions, administrative procedures, socio-economic infrastructure and human resources are major causes of this situation.   

Fourth, many pressing social problem are slow to be done away with, especially those related to food hygiene and safety, vaccine, biological and hospital waste management, labor and traffic accidents.

The life of a portion of farmers, particularly those living in mountainous, remote and border areas and on islands, is still hard. The poverty rate among ethnic minority groups is four times higher than the national average.    

Problems in land recovery, compensation and resettlement have caused delays to investors and difficulties to families whose land is recovered.

Fifth, environmental protection still sees many limitations. Many rivers, industrial parks, mining areas, craft villages and urban centers are seriously polluted. Forests continue to be destroyed in many areas.

Sixth, anti-corruption, thrift practice and waste combat efforts have achieved initial results but there are still many serious cases of corruption. In some cases, investigation and prosecution remain slow. 

In its report, the Government has set out socio-economic development targets for 2008 which it regards as the pivotal year for the fulfillment of the five-year 2006-2010 plan.

Economic targets

GDP will increase 8.5-9.0% compared with 2007. Calculated at current prices, GDP of 2008 will be around VND 1,337-1,347 trillion, equivalent to USD 83 billion, bringing per capita income to about USD 960.

Added value of agriculture, forestry and fisheries will increase about 3.5-4%; industries and construction 10.6-11%; and services about 8.7-9.2%.

In GDP, the share of agriculture, forestry and fisheries will further decrease from 20% in 2007 to 19.3% in 2008, while that of industries and construction will increase from 41.8% to 42.2%, and that of services from 38.2% to 38.5%.

Compared with 2007, total export value will increase 20-22% to USD 57.6-58.6 billion and total import value 20-22% and USD 68.4-69.5 billion, leaving a trade deficit accounting for 18.6-18.7% of total export value.

Total investment capital of the whole country will be about VND 567.3 trillion, up by 22.1% over 2007, representing 42% of GDP.

Total state budget revenue will be VND 321.4 trillion, up by 11.5% of the estimated figure of 2007; and total state budget expenditure VND 397.38 trillion and 7.8%.

The state budget deficit will equal 5% of GDP.

The consumer price index will be kept lower than the GDP growth rate.

Social targets

The number of provinces that achieve universal lower secondary education will increase to 46.

The numbers of newly enrolled students will increase 13%, 16.5% and 18% at university and college, professional secondary, and collegial and intermediate vocational training levels respectively.

The birth rate will reduce by 0.03%, and the population will be 86.3 million.

About 1.7 million jobs will be created, including 85,000 overseas jobs.

The poor household rate will further drop to 11-12%.

The malnutrition rate among under-five children will fall to below 22%.

The number of hospital beds per 10,000 people will be 25.7.

Per capita living space will increase to 12 sq.m.

Environmental targets

Potable water will be supplied to 75% of rural population and 85% of urban population.

The percentage of industrial parks and export processing zones with wastewater treatment systems will reach 60%.

The rate of collected solid waste will be 80%. Treated hazardous waste and medical waste will account for 64% and 86%, respectively.

By the end of 2008, the rate of forest cover will be 40%.

Serious pollution-generating establishments will be reduced by 60%.

In 2008, according to the report, the Government will continue implementing measures and policies identified in the approved 2006-2010 plan and its plan of action for the implementation of the resolutions of the Xth National Party Congress and the XIth National Assembly on the 2006-2010 socio-economic development plan. The report lists the following nine major measures:

1. Actively improving the investment and business environment, accelerating economic growth, raising the quality, efficiency, competitiveness and sustainability of the economy

- To perfect the legal system on the market economy, build institutions for the formation and smooth operation of various markets, especially the estate market, the monetary market, the capital market, the labor market, the service market and the scientific and technological product market. To promulgate policies to encourage economic sectors to invest more in agriculture and rural and disadvantaged areas, and create favorable conditions for enterprises to vigorously invest in fields with comparative advantages, great development potential and high economic benefits;

- To renew state enterprises, closely and effectively direct the equitization of economic groups and state corporations;

- To further attract foreign investment, especially in large projects, infrastructure projects and hi-tech production projects. To raise the effectiveness of ODA management;

- To improve planning work;

- To continue agricultural restructuring along with strictly managing production land areas with a view to ensuring permanent food security;

- To encourage the vigorous development of industries and the raising of product quality and competitiveness;

- To boost the development of services at a rate higher than the GDP growth rate;

- To organize the comprehensive implementation of the marine economy development strategy;

- To renew mechanisms for management of sciences and technology transfer, linking scientific and techno-logical development with production and business activities. To develop the scientific and technological market, support the formation and development of technology exchanges and technology and equipment markets. 

2. Ensuring macro-economic stability

- To implement flexible monetary and foreign exchange policies on the market principles. To perfect open-market operations and develop and improve banking services. To liberalize interest rates and expand non-cash payment instruments;

- To proactively apply economic and monetary measures to keep the inflation rate lower than the economic growth rate. To control the prices of essential commodities on the market principles to prevent speculation and price hikes;

- To explore into the establishment of a supervisory body to assist the Government in supervising banking, insurance and securities activities and investment funds;

- To boost export and restrict trade deficit;

- To encourage the development of subsidiary industries and the use of domestic raw materials, contributing to increasing the local value of exports and incrementally reducing dependence on imports;

- To introduce technical barriers in compliance with international practice against imports in order to reasonably protect domestic production;

- To negotiate and sign mutual recognition agreements with other countries on standardization, especially those on technical standards, quarantine and food hygiene and safety;

- To further reform salary and social insurance policies. From January 1, 2008, to increase the common minimum salary level from VND 450,000 to VND 540,000 a month.

3. Mobilizing investment resources for quickly developing infrastructure

- To approve master plans and promulgate policies and lists of socio-economic infrastructure projects calling for domestic and foreign investment in different forms such as BOT, BT and BTO. To sell and lease infrastructure facilities under the state ownership to earn money for investment in new projects;

- To concentrate on formulating urban development plans and encourage enterprises to invest in constructing houses, office buildings, hotels and public facilities.

4. Concentrating efforts on developing human resources

- To take synchronous measures to improve the quality and effectiveness of human resource training, making human resources an important factor for attracting investment and a competitive advantage of the economy; 

- To concentrate on building a number of vocational training schools, colleges and universities up to international standards;

- To improve community health care. To control the drug market with synchronous measures;

- To formulate a food safety law.

5. Effectively dealing with social issues

- To increase state budget allocations for cultural, social, educational, medical and poverty reduction fields, ensuring economic development closely connected with cultural and social advancement;

- To provide land, credit and tax incentives for all economic sectors to invest in building and developing education and training and medical examination and treatment establishments to meet increasing needs of the people;

- To achieve rapid and sustainable poverty reduction objectives by stepping up the implementation of infrastructure construction and production support programs targeting at the poor and the advantaged;

- To take drastic measures for controlling traffic accidents and congestions.

6. Protecting the environment

To properly implement the Environ-mental Protection Law and the national environmental protection strategy as an urgent measure for sustainable development and improvement of people’s lives. To strictly control wastes, especially hazardous wastes. To encourage investment in environmental protection, waste collection, treatment and recycling, and application of new technologies to clean the environment.

7. Stepping up administrative reforms, intensifying anti-corruption, thrift practice and waste combat efforts

- To step up the implementation of the comprehensive program on administrative reform toward 2010 and expeditiously complete and stabilize its organizational apparatus and those of local administrations. To vigorously reform administrative procedures which are causing troubles to citizens and enterprises;

- To focus on resolving citizen complaints and petitions, reviewing and amending regulations on land recovery, compensation and resettlement to ensure the livelihood of people.

8. Firmly preserving national sovereignty, maintaining political security and social order and safety

- To increase national defense and security potential and strength, heighten vigilance and firmly protect national sovereignty;

- To perfect regulations on marriages between Vietnamese and foreigners, ensuring voluntary marriages suitable to Vietnamese fine traditional customs, protecting lawful interests of women, and strictly handle those who illegally abuse marriage brokering services.

9. Promoting external activities and enhancing the country’s status in the international arena

- To continue implementing measures to deepen and sustain the country’s international relations; 

- To expeditiously prepare conditions for and make active contributions to the UN Security Council’s mission of preserving peace and security across the world;

- To organize the strict and effective implementation of international commitments and the active implementation of programs on cooperation in the sub-Mekong river region, the trans-Asia highway, economic corridors and belts;

- To continue well implementing policies toward overseas Vietnamese and regulations on visa exemption, house purchase and investment. To study and submit to the National Assembly for consideration the dual-citizenship aspiration of overseas Vietnamese.-

A ten-year campaign

February 1997: Vietnam registered for election to become a non-permanent member of the UN Security Council.

October 2006: Fifty-four Asian countries adopted a resolution to recommend Vietnam as the sole candidate representing Asia in election for a non-permanent seat in the UN Security Council in the 2008-2009 term.

September 27, 2007: Addressing the UN Security Council’s meeting in New York, Prime Minister Nguyen Tan Dung committed that Vietnam will always be an active, cooperative and responsible member of the UN, deserving the trust of the international community.

October 16, 2007: Vietnam was elected a non-permanent member of the UN Security Council.-


Send Us Your Comments:

See also:


A “painting” on rice fields in Tam Coc