Vietnam: PM underlines macro-economic stability and higher growth rate as top priorities in new year.

Section: General News - On the threshold of the New Year 2010, PM Nguyen Tan Dung had an article recalling Vietnam's lessons and experience of overcoming difficulties and challenges amid the global economic crisis. The PM also pointed out solutions to consolidate macro-economic stability and obtain a higher growth rate.

In 2008 - 2009, our people and country have been facing and overcoming many difficulties and challenges due to unusual and reverse changes of the world economy, which worsened the national economy's internal weaknesses and restricted our possibilities to adopt responses and development policies.

The story began with inflation, when the rocketing prices of food, petroleum and most of imports made prices on domestic market to hike. In addition, financial and monetary policies were loosen for years, foreign investment capital in stock market sharply increased, the total means of payment and outstanding credits surged, especially in 2007, and we were forced to readjust prices of coal, petroleum and electric power in line with the market regime. The aggregate impact of all these elements made the consumer price index in our country to reach a double-digit figure, higher than some countries in the region, put production and people's life in difficulties, caused worries and diverted feelings in the society. In such a context, we adopted the priority targets of curbing inflation, stabilizing macro-economy, guaranteeing social security and maintaining a proper growth rate through eight groups of synchronous solutions in order to fulfill this unscheduled major task.

Since September 2008, the financial crisis and economic recession, rising from the US, spread out worldwide, seriously affecting most of economies and causing negative impacts on our country, especially in terms of export, investment capital, tourism revenue and remittance, diminishing growth and threatening macro-economic stability and social security.

Recognizing serious impacts of the crisis, in early quarter IV of 2008, we shifted priority targets from curbing inflation to preventing growth recession while maintaining macro-economic stability and social security. The Government timely issued economic stimulus policies and provided interest rate incentives in line with the actual situations in order to boost up production and business, secure employment and growth.

Thanks to great efforts made by the entire Party, people, army and the business community, under the sound leadership of the Party Central Committee and the effective management of the State, we realized the overall targets of each year. Inflation was kept in control, since mid-2008, price increase was reined in and slashed down to 6.52% this year. Vietnam has managed to obtain a GDP growth rate of 6.23% last year and in 2009, when the world economy see a negative indicator, it continued to be one of few countries attaining a relatively high growth rate of 5.32%; macro-economy was stabilized; social security and welfare maintained; national sovereignty, political security and social order and safety guaranteed; the country's status and strength further consolidated, and its position heightened on international arena.

At the Consultative Group (CG) Meeting in early December, international donors offered a record ODA commitment of over US $8 billion in 2010. This proved that the international community highly admired the Party and State's guidelines for renovation and socio-economic development.

We can draw out many valuable lessons and experience of coping with difficulties over the past two years: (1) Sustaining macro-economic stability and social security while creating a favorable climate for business activities; (2) Mobilizing all investment resources to promote production and business, and to expand markets in an increasingly effective way is the decisive factor to …