VINACHEM

GDP was likely to grow 6.6-7 per cent in the third-quarter and 7.2-7.5 per cent for the fourth quarter, he told the monthly Cabinet meeting in Ha Noi yesterday.

The estimate prompted the meeting to agree that Viet Nam's GDP would grow 6.5-6.8 per cent this year.

The National Assembly has set a growth target of 6.5 per cent and the General Statistics Office's Acting Director General, Do Thuc, said earlier this week that it was likely to be met.

The Planning and Investment minister said budget revenue was likely to exceed 5 per cent of that previously forecast and overspending would total about 6 per cent of GDP – a reduction of 0.2 per cent against the amount planned.

Export revenue for the entire year was expected to total about US$66 billion – an increase of 15.6 per cent against 2009.

The import deficit would total about $15 billion – equal to about 22.7 per cent of export revenue.

The minister believed the Consumer Price Index (CPI) would be held to about 8 per cent.

The meeting, which reviewed implementation of the country's socio-economic targets to June 30, was especially important because it was held during the last year of both Viet Nam's five-year plan 2006-10 and its ten-year plan for socio-economic development 2001-10.

Chaired by Prime Minister Nguyen Tan Dung, its purpose was to draw the lessons necessary to ensure the 2010 set targets will be achieved.

The chairmen of Viet Nam's 61 provincial and city people's committees and their deputies contributed to the review via a telelink.

The meeting agreed that Viet Nam's economy had been rapidly restored during the last six months with growth in all economic sectors higher than expected.

The Planning and Investment Minister said GDP growth to June 30 was 6.16 per cent - 5.83 per cent in the first quarter and 6.4 per cent in the second.

Growth for agro-forestry and fisheries was 3.31 per cent and industry and construction 6.5 per cent.

The service industry grew 7.05 per cent.

Tax revenue totalled about VND 242.4 trillion ($13 billion) or 52.5 per cent of the target set for the entire year and 21.6 per cent higher than the same months of last year.

Export revenue was about $32.1 billion, an increase of 15.7 per cent against the same months of 2009.

The cost of imports was about $38.9 billion creating an import-export imbalance of $6.7 billion.

"Achievements recorded in the first six months are attributed to the government's clear instructions in maintaining a good balance between macro stability and economic growth," the minister said.

Targets

Prime Minister Nguyen Tan Dung told yesterday's meeting: "We must be pro-active against natural disasters, including storms, flood and drought, as well as disease in humans, animals and plants."

It was also crucial to control inflation, particularly the prices of essential goods for production and for the daily life of the people.

He called for enterprises to make more rural investment and make the Viet Nam Communist Party's Central Committee Resolution for the building of a new lifestyle in the countryside a reality.

The ministers also discussed a draft of the Complaints and Denunciations Law; the proposed changes to the Insurance Law and other legal documents.

(Source: VNS)