VINACHEM

Despitepositive progress in its economic development plan, the country'seconomy was still facing challenges on its way to reaching the targetedsocio-economic aim, PM Dung said yesterday at the Government's monthlymeeting.

Governmentofficials gather every month to review the socio-economic developmentof the month and discuss measures to stabilise the macro-economics,restrain inflation and ensure the social security for the rest of theyear.

The Ministry of Planning and Investment reported that the first eight months of the year.

Theindustrial production continued to grow,increasing by 15.2 per centcompared to the same period last year, and the trade gap slightlydecreased, the ministry said in its report.

Meanwhile, the month's consumer price index grew by 0.23 per cent over the previous month.

Goodco-ordination among sectors and localities had helped agricultureimprove and kept pandemics under control despite the negative impact offloods and storms, the Ministry of Planning and Investment reported.

Social security had been ensured and people's living standards had been lifted, the ministry reported.

Nevertheless, the Government pointed out shortcomings of the economy, which needed to be made good.

Thedomestic economy was facing the negative impact of the global market'sincreasing prices, especially in the last quarter of the year,Government officials said.

Firmsand enterprises were still ineffective in mobilising capital sources asbank loan interest rates remained high. Epidemic diseases were at acritical point and still threatened to seriously affect production andpeople's lives.

Theofficials also discussed ways to effectively implement thesocio-economic development plan next year and in the coming five years.

One of the most discussed issues was how to develop the electricity industry.

Theofficials agreed on a plan to introduce an open and favourablemechanism to boost electricity production. The Government would favourthe socialisation of the industry, calling on the involvement andinvestment of all economic sectors.

Together with implementing hydro-power projects, the Government wouldboost the development of natural-energy generated power programmes.

Dungasked the Ministry of Industry and Trade to focus on producingelectricity to avoid shortages of power, with Government playing thekey role in the field with the support of all sectors. He asked theGovernment to set the economic growth for the next year at 7.5 percent.

While theGovernment was expecting to see its GDP grow at 6.5-7 per cent thisyear, the consumer price index should be maintained at 7 per cent tomake sure the macro-economy stabilised, he said, and the excess ofimports over exports was to be kept below 18 per cent.

Dungsaid policies to support the nation's key programmes would beintroduced and the new rural development plan would be on the next fiveyears' economic plan.

Indiscussion of the 2011-15 economic plan, Government officials said theguarantee of social security should be the key factor. They asked thatministries and sectors review their own targets to set out the singlegoal for the country.

Special attention needed to be paid to environment protection work andsustainable development, the officials said, adding that the tasks ofaddressing climate change would also need great effort. Governmentconfirmed its commitment to administrative reform and equitisation inState-run enterprises.

(Source: VNS)