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Official Gazette

Sunday, September 20, 2020

Socio-economic development mapped out for next five years 2006-2010

Updated: 15:34’ - 11/05/2006


1. General goals

- To accelerate economic growth, make important changes for effective and sustainable development, quickly bringing our country out of the underdevelopment state.

- To significantly improve the people’s material, cultural and spiritual life.

- To create foundations to step up the industrialization and modernization process and gradually develop the knowledge-based economy, turning ours into a primarily industrialized country by 2020.

- To maintain political stability, social order and safety.

- To firmly protect national independence, sovereignty, territorial integrity and security.

- To enhance Vietnam’s status in the region and the world.

2. Main targets

a/ Economy:

GDP in 2010 will be 2.1 times higher than that in 2000. Annual average GDP growth rate per capita for the five years 2006-2010 will be 7.5-8% (if domestic and international conditions favor, there will be more new opportunities to attain the GDP growth rate of above 8%). GDP per capita will be about USD 1,050-1,100 by 2010.

The economic structure in GDP in 2010 will be as follows: Agriculture,
forestry, and fishery products - about
15-16%, industry and construction - about 43-44%, and services - about 40-41%.

National budget revenue will be about 21-22% of GDP.

Total export turnover will increase by 16% annually.

Total social investment will account for 40% of GDP, of which domestic capital is 65% and external capital 35%.

b/ Social affairs

By 2010, the universalization of lower secondary education will be completed in all centrally-run cities and provinces. Tertiary education will be provided to 200 per 10,000 people. Trained labor rate will reach 40% of the total social labor.

The population growth rate by 2010 will be about 1.14%.

In five years, jobs will be created for over eight million laborers and vocational training will be provided for 7.5 million people; urban unemployment rate will stay under 5%; poor households (according to new standards) will be reduced to 10-11% by 2010; 100% households in need will have houses to live in, with the average of 14-15 m2 per capita.

c/ The environment

By 2010, 100% of level-1, -2 and -3 cities, 50% of level-4 cities and all newly built production establishments will apply clean technology or be equipped with pollution minimization facilities, ensure waste treatment; 50% of production and business establishments will have proper wastewater treatment systems; 80% of hazardous waste and 100% of medical waste will be treated.

About 95% of urban population and 75% of rural population will have access to clean water.

Forest coverage will increase to 42-43%.


1. Agriculture and rural areas

Substantial changes will be made in agricultural production, and rural economy will strongly develop, satisfying domestic demands and increasing export turnover. Diverse and clean commodity agriculture will be built, with fast and sustainable development, high quality, productivity and competitiveness. Trades and crafts will be diversified, particularly those with high added and export value to create more jobs and improve farmers’ living standards. The linkage between industry and agriculture will be promoted so as to improve production efficiency. New rural areas will be built with modern infrastructure in association with urbanization.

2. Industries

A high industrial growth rate will be sustained together with industrial product quality improvement and production efficiency. The competitiveness of the industrial sector will be enhanced in order to sustain and expand domestic and international market shares. Due priority is to be given to the development of potential industries, hi-tech products, industries manufacturing critical production materials, defense industries, labor-intensive industries, promoting the development of economic infrastructure for national industrialization and modernization. The demand-supply balances regarding essential industrial products such as electricity, coal, construction steel, petrol and gasoline, cement and fertilizers shall be ensured on the basis of strong domestic production to satisfy domestic demands.

3. Services

To make a tremendous thrive in the service sector, with development and improvement of traditional services as the focus. To concentrate on development of potential and competitive services such as tourism, aviation, ocean shipping, telecommunications, banking and finance. And at the same time, to develop rapidly high-grade tourist services, contributing to job creation and fast increase in on-spot exported services. To make substantial changes in management mechanisms and in methods of provision of public services, considering this a breakthrough to the new development of socialization efforts in cultural and social fields.

To strive to achieve an annual value-added growth rate of 7.7-8.2% in the service sector.

4. Import, export and international integration

To develop exports at high growth rate as a momentum to drive economic growth. To accelerate production and export of goods and services that have competitiveness and potentiality for development. To increase the proportion of processed and manufactured products and products of hi-tech and knowledge content. To strive for an annual export growth of 16%.

To prioritize the import of materials, advanced equipment and technologies from upstream production countries while limiting the import of obsolete or intermediary products and products that Vietnam can produce.

To proactively and actively integrate into the world economy according to an effective roadmap. Together with the further improvement of policies, mechanisms and legal documents, to take every measure to increase the competitiveness of the economy as well as of enterprises, to expand and develop national and international markets.

5. Education and training, science and technology

To continue educational and training reform in a systematic and coordinated manner; to improve the quality of human resource training to meet the requirements of industrialization and modernization. To promote development of education at all levels, from pre-school education to university. To give priority to education and training in mountainous, ethnic minority and disadvantaged areas.

To improve the domestic capacity of science and technology together with the application of scientific and technological achievements in the world. To accelerate the process of technology renewal in various economic sectors,  develop high technologies and modernize traditional technologies for the production of more competitive goods and services.

6. Social issues

To improve the quality and effectiveness of use of labor force. To continue labor restructuring along the line of reducing agricultural labor and increasing industrial, construction and service labor. To endeavor to create jobs for more than 8 million people. To reduce the unemployment rate in urban areas to below 5%.

To continue effective implementation of the Comprehensive Poverty Reduction and Growth Strategy and Millennium Development Goals. To strive to reduce the ratio of poor households (according to new criteria) to 10-11% by 2010. To give special emphasis to poverty alleviation in mountainous and  ethnic minority areas. To facilitate poor households to pass the poverty line on their own. To encourage people to get rich in accordance with law.

To make efforts so that everyone can be provided with basic healthcare services and have access to and use high-quality healthcare services.

To continue developing an advanced Vietnamese culture deeply imbued with national identity. To promote information, radio and television work.

To strongly develop physical training and sports.

To guarantee and respect freedom of religion and belief, and religious activities in accordance with law.

To properly implement gender equity, enhance women’s status and protect children’s rights.

To strengthen national defense and security in combination with socio-economic development.

7. Environmental protection, sustainable development

To minimize the increase of pollution, overcome environmental degradation and improve the quality of environment; to treat waste in major cities, industrial areas and craft villages; to improve and solve environmental problems in seriously polluted rivers and lakes.

To increase forest coverage to 42-43% of the total natural land area, rehabilitate 50% of degenerated upstream forests while improving forest quality and promoting non-concentrated plantation by the population. To expand nature conservation zones, especially marine and wetland conservation areas by 1.5 times.

To use natural resources in a rational, efficient and sustainable manner, ensure ecological balance, nature conservation and biodiversity. To raise awareness about environment, pay great attention to measures for preventing pollution and improving the environment. To enhance public awareness about sustainable development. To further improve the institutional system for sustainable development, adopt mechanisms and policies for investment and mobilization of investment capital for sustainable development. To develop sustainable development programs (Agenda 21) by sector and by locality.


The objective of socio-economic development for all regions in the 2006-2010 period is to promote the strengths and competitiveness of each region in an overall linkage, exerting pervasive impacts to accelerate socio-economic development in all the regions across the country.

Three key economic zones (northern, central and southern):

To perform the socio-economic tasks assigned under the Political Bureau’s resolutions and the Prime Minister’s decisions on socio-economic development orientations for key economic zones. To establish a number of large and high-grade economic groups. To concentrate on development of economic areas, industrial parks and export-processing zones and hi-tech parks on the basis of increasing the current capacity and building new establishments to stimulate the development process. To form a comprehensive infrastructure system in association with environmental protection, especially the network of national highways and the network of inter-regional roads that create conditions for inter-regional development and international cooperation. To accelerate the pace of development of certain key economic corridors associated with national highways. To develop urban systems toward modernity with the establishment of small- and medium-sized urban centers in more developed rural areas. To develop science and technology, especially high technologies and new materials technologies, develop high-quality services such as telecommunications, finance, insurance and banking. To develop high-quality human resources.

Disadvantaged areas:

To implement the Political Bureau’s resolutions on socio-economic development, defense and security and the Government’s programs of action  on socio-economic development tasks for these areas. To concentrate on infrastructure development, firstly on development of transport, irrigation, clean and safe water supply, electricity supply, development of education and training; to raise the people’s intellectual level and improve the quality of human resources. To mobilize investment resources for disadvantaged and poor areas to facilitate their rapid development and narrow their gap with the national development level. To develop social safeguards to support low-income and poor people. To increase vocational training, create more jobs, reduce the workload and increase incomes for women. To step up hunger eradication and poverty alleviation in disadvantaged areas.

Rapid development of marine economy:

To develop Vietnam into a strong country in marine economy; to associate marine economy development with national defense and security, and international cooperation. To develop the system of roads, seaports and  economic establishments in coastal areas in combination with the construction of defense works for sea areas. To strongly develop science, technology and human resources for marine development. To make investment in the rearing and exploitation of marine resources, ocean shipping, marine tourism, and oil and gas exploitation and processing as the core of marine economy. To develop industries and services to support marine economy development. To establish general service enterprises in a number of seaports and islands. To strengthen security forces to preserve Vietnam’s sovereignty over its sea areas and islands. To develop sea forecast and research centers.


1. Investment

a/ The targets of industrial investment are to quickly restructure industrial production along the line of increasing the share of processing industries and diversifying products, creating favorable conditions for maximum mobilization of resources from domestic and international economic sectors for industrial development.

To make intensive investment in energy, materials, hi-tech, energy-conserving, electronics, informatics, supporting, component-manufacturing, and exports-manufacturing industries, and industries in support of agricultural and rural development. To concentrate investment on technological renewal and increase knowledge content in industrial products.

b/ To invest in the establishment of concentrated zones of agricultural production and intensive cultivation connected with the development of processing industry; to build processing plants in raw material production areas. To make in-depth investments in scientific research centers for generating animal and plant species of high yield and good quality. To increase investments in irrigation systems to ensure water supply and drainage for agriculture and aquaculture. To give priority to investments in building rural infrastructures. To further improve and build new rural water supply systems,  especially in the Mekong River delta and mountainous areas.

c/ To basically complete transport networks to meet the demands of goods and passenger transportation within the country and between Vietnam and other countries.

To basically complete and put into operation networks of main national highways, railways and waterways. To comprehensively build transportation systems in key economic zones. To expand and modernize international terminals, airports and seaports. To strongly develop urban traffic systems in Hanoi and Ho Chi Minh City to resolve traffic jams. To focus on the development of local traffic systems, building roads to all commune centers, of which 90% are usable in all seasons.

d/ To develop and modernize infrastructure systems in urban areas, improve water supply systems and provide sufficient clean water for urban centers and industrial parks. To basically improve the water drainage, sewage treatment and solid waste treatment in special, level-1 and level-2 urban centers, industrial parks, and in a number of urban centers, craft villages and residential areas which are currently heavily polluted. To improve traffic systems in Hanoi, Ho Chi Minh City and other centrally run cities.

e/ To further invest in science and technology, education and training. To pool resources primarily for leading research institutes, two scientific centers, key laboratories, hi-tech parks, and software centers; to increase investments in technology application and transfer centers so that they can proceed to  develop high technologies. To make further investment to complete the program on  consolidation of schools and classes. To concentrate investments in building national, key and regional universities. To attract domestic and foreign investment to improve the system of vocational schools.

f/ To make intensive investment in upgrading and completing the grassroots healthcare network; to expand and upgrade provincial general hospitals  and district hospitals with a view to meeting the people’s demands for medical check-up and treatment.

g/ To continue to invest in the preservation and development of cultural heritages, focussing on historical and revolutionary sites and special national cultural heritages.

To concentrate efforts on the construction of national sports training centers and local sport competition and physical training centers.

h/ To mobilize resources from government, enterprises and communities to invest in pollution rehabilitation and ecological and environmental protection. To concentrate investment in waste treatment in urban areas, factories, industrial parks, craft villages, and seriously polluted rivers and lakes. To increase investments in development of protective forests and economic forests, and prevention of soil erosion and water resource exhaustion.

2. Enterprise development

To stably speed up the reorganization and renovation of state enterprises along the line of forming multi-owner state enterprises with improved  efficiency and competitiveness which will be core players in key industries and promoting socio-economic development.

To continue the transformation of state enterprises into joint-stock companies under plans approved by the Government, including corporations where the State does not need to hold 100% of their capital. To develop a number of strong economic groups in such important fields as post and telecommunications, petroleum, power and aviation.

To keep renewing the collective economic sector and strongly develop multi-owner economic forms. To create favorable conditions for developing various forms of cooperative economy compatible with the development level of industries and trades in each region. To continue studying and building new  models for cooperatives; to renew the operation of cooperatives and improve their efficiency.

To create favorable conditions for the development and investment of the private sector without limiting their scale, trades, fields of business and geographical areas. To thoroughly eliminate all forms of discrimination and honor good producers and entrepreneurs.

To strongly develop the foreign-invested economic sector. To implement the Investment Law and the Enterprise Law, gradually reduce and ultimately abolish all regulations that discriminate against foreign-invested enterprises. To encourage foreign investors to directly or indirectly invest in all sectors and fields permitted by the Government. To soon apply a unified pricing system for goods and services, land rent, and site clearance compensations to both domestic and foreign investors.

3. Financial and budgetary policies

To strengthen the national financial potential, maximize financial sources for development investment. To comprehensively carry out different measures to mobilize and effectively utilize domestic and external financial sources for development investment.

To renew state budget management mechanisms to ensure the unified  state budget, the dominant role of the central budget, promote decentralization of powers and responsibilities in budget management at all levels and in all units funded with the state budget. To improve efficiency, publicity and transparency in the use and management of the state budget.

To rationally allocate national financial sources, focusing on key fields. To maintain reasonable ratios of national and government debts under the State’s tight control.

4. Monetary policies, prices and inflation control

To flexibly formulate and implement monetary policies to ensure  stabilized macro-economy, control inflation and ensure safety for the banking system and credit institutions. To closely link monetary policies with fiscal ones. To adequately raise funds for development investment. To steadily improve and fully realize the convertibility of the Vietnamese currency. To keep implementing flexible exchange rate policies. To narrow the scope of use of foreign currencies for payment in Vietnam with a view to gradually lessening the “dollarization.”

To increase price control measures. To well organize forecast activities and handle influences of international price and input cost changes to meet requirements of international integration and domestic production development.

5. Salary policy and social insurance

To continue salary reform under plans already approved by the Government. To quickly study and apply a single minimum salary policy to both domestic and foreign invested enterprises. To find out solutions for unreasonable issues related to salary and incomes of officials and employees in state agencies, political organizations and socio-political organizations; and to incomes of pensioners and other social policy beneficiaries. To develop diverse insurance types. To properly implement the health insurance policy for under-6 children, the poor, social policy beneficiaries and other disadvantaged people.

6. Comprehensive development and perfection of economic institutions

a/ To perfect the legal system and develop different types of market

To continue building and perfecting economic laws, firstly legal system to ensure an investment environment which is fair, uniform, public and clear in order to encourage all economic sectors, mobilize all funding sources for better business investments to boost the national economic development.

To complete a legal and institutional framework for the formation and effective operation of diverse types of market; to concentrate on markets for goods and services, real estates, labor, finance, and science and technology.

b/ To develop participants in the market economy

To clearly define the scope and content of the State’s economic management; to adjust the function of the Government. To eliminate as soon as possible the function of owner-representative of ministries and provincial-level People’s Committees in state enterprises. To clearly separate the state administrative management from the management of public services. To enhance the sense of initiative, independence and self-accountability for public-service non-business units. To build an administrative system professional and modern.

To perfect the title standard system as a basis for the assessment of the quality of cadres and civil servants. To properly carry out personnel planning work, especially for leading officials. To improve appointment procedures in order to recruit qualified personnel for the state apparatus.

 To further improve mechanisms that support the establishment, operation, development and competition of enterprises. To properly enforce the Investment Law and the Enterprise Law. To perfect and concretize the legal framework for competition and monopoly control. To encourage enterprises to compete in producing knowledge-based products.

To facilitate small- and medium-sized enterprises, cooperatives, farms and enterprises of the private economic sector to have easier access to the State’s incentive policies and assistance programs, especially in calling for  investment capital and credits, renting land for business and production activities, supply of market information, use of technical consultation and human resource development training, and to business development services.

c/ To perfect performance mechanisms

To renovate the mode of the State’s economic regulation on the basis of fundamentally improving planning work; to vigorously improve planning work in order to better satisfy the requirements of socio-economic guidance and management. To implement the planning process from strategies, master plans to detailed plans, closely linked with markets and international economic integration. To pay special attention to the formation of indicators and criteria for evaluating socio-economic development in master plans and plans.

To push up the decentralization of the State’s economic management. To continue reforming administrative procedures in order to ensure legality, efficiency, transparency and fairness in solving administrative affairs. To  abolish unnecessary and overlapping procedures which can easily be abused for corrupt practices. To ensure the publicity and transparency of the one-stop-shop: mechanism and the proper performance of this mechanism by state administrative agencies.

To further practice thrift, prevent waste, and step up the fight against bureaucratism and corruption in the state apparatus. To create conditions for social organizations, mass organizations and the public to take part in managing and monitoring certain public domains.-


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