(VOVworld) - The government monthly meeting for July spent much of the session discussing ways to achieve a sustainable and appropriate economic growth. The government hopes to maintain the growth rate without causing macro-economic instability and re-triggering high inflation.

The Prime Minister chairs the government monthly meeting for July

At their two-day meeting, which concluded on Tuesday, cabinet members agree that Vietnam’s socio-economic development in July and over the past seven months has been on the right track. The positive trend is expected to continue in most areas. But economic growth during the past seven months was low compared to previous years, so, it will be difficult to attain this year’s GDP growth target of 5.2 - 5.7 percent.        

The main task for the remainder of the year is to stimulate growth while curbing inflation and maintaining macro-economic stability. The government is urging ministries, sectors, and local authorities to meet set targets, boost production, control inflation, stabilize the macro-economy, and restructure the economy to improve quality, efficiency, and competitiveness.

Priority in access to credit should be given to businesses in key sectors such as agriculture, manufacturing products for export and support industries, and small and medium-sized enterprises. The State Bank of Vietnam has been asked to restructure debts and reduce bad debts using coordinated measures, while restructuring weak commercial banks and maintaining a stable exchange rate. Governor of the State Bank Nguyen Van Binh elaborates: “We are in the process of restructuring 9 credit organizations. We have completed inspection and independent auditing and are about to finalize measures for each bank. We have provided banks with conditions and a timeline, but if credit organizations are unable to restructure themselves, we have backup plans to ensure the safety of the network.”

Another key target is to review State-owned enterprises to improve their productivity and business effectiveness while speeding up disbursement of official development assistance (ODA), State budget and foreign direct investment resources. Minister and Head of the Government Office Vu Duc Dam says: “The government will decide which sectors continue to use investment capital on schedule. For important projects, which are crucial to people’s lives and productivity, they can use 2013 capital early to complete the projects ahead of schedule. This public investment reform measure should take into consideration other factors to mitigate the impact on the consumer price index.”

The government is also looking at how to better implement social security policies and national target programs. Ministries and sectors should pay more attention to vocational training, job generation, and social welfare. Minister of Construction Trinh Dinh Dung says the ministry is encouraging social housing projects to boost the economy and provide housing for low-income families. Minister Dung reveals: “Housing projects for poor people in rural areas have been done well, but housing for poor urban people remains a challenge. We’ll submit to the Prime Minister a low interest rate package to support social housing companies.”

At July’s monthly meeting, the Government asked ministries and sectors to push administrative reform, battle corruption and waste, and implement communications to promote the social consensus needed to achieve its growth target.