(VOV) - On the first day of the third session of the 13th National Assembly Deputy Prime Minister Nguyen Xuan Phuc delivered a report on the implementation of the socio-economic development plan in 2011, the implementation of the socio-economic development plan and state budget in the first four months of 2012, and measures for the remaining months of the year. VOV brings you excerpts of the report.

Deputy Prime Minister Phuc said that, faced with continuing economic challenges this year both global and domestic markets, the government has promulgated a resolution covering key measures for implementing the 2012 socio-economic plan and state budget. The measures prioritize controlling inflation, stabilizing the macro-economy, maintaining a moderate growth rate, in combination with reforming the development model, restructuring  the national economy, ensuring social welfare and security, and improving people’s living conditions. Mr. Phuc says ‘Over the past 4 months, Vietnam has had some economic gains. Inflation has been kept under control with the consumer price index starting to drop since the middle of last year. The interest rate has gradually fallen, the exchange rate has been stabilized, and the balance of trade has been improved. Exports have rallied and the trade deficit has shrunk. Industrial production is recovering. Social welfare and preferential treatment for those who have rendered great service to the nation have received increased attention’.

Mr. Phuc pointed out some shortcomings of the economy. These include signals of an impending recession. Tight fiscal and monetary policies have contributed to inflation control, but have also pushed enterprises into a dilemma. In many places, people’s living conditions remain poor, creating risks in terms of security and social orders. Corruption has not been reduced. Phuc says ‘We should pursue inflation control targets, and carefully implement monetary policies while harmonizing the monetary policy and other fiscal policies to ensure this year’s inflation does not exceed 8 or 9%. This will pave the way for lower inflation rates in the following years toward marco-economic stabilization and sustainable economic growth in the medium and long term. We should also make the nation financially healthy, and tightly monitor Government, public and foreign debts to ensure they are within a safe range’.

Regarding economic restructuring and reform of the growth model, priorities will be given to restructuring public investment, the financial and banking systems, and state-owned enterprises. The Government is speeding up implementation of a resolution on social policies until 2020 and will focus all available resources to implement national target programs on schedule. The legal system, administrative reform, state management, fight against corruption, and external relations will also receive more attention. Deputy Prime Minister Nguyen Xuan Phuc ‘We should increase security and defence potential to protect the national sovereignty and integrity, especially over the country’s sea and islands. We will further cooperate and settle disputes on the sea via peaceful solutions and in pursuance to the international law. We will work closely and peacefully with neighboring countries in border planting and demarcation. Activities relating to securing the political security, social safety and orders will be enhanced. We will take more drastic measures to conduct national programs on prevention of crimes, drug trafficking, and the trafficking of women and children’.