Socio-economic growth on a roll

Prime Minister Nguyen Tan Dung told the eighth session of the 12th National Assembly, which kicked off last week, that Vietnam had reaped impressive socio-economic windfalls in 2010, based on the last three quarters’ achievements and expected outcomes in the remaining three months.

“We have successfully curbed the economic downturn, while reaping relatively high economic growth,” Dung said.

He said Vietnam’s gross domestic product (GDP) was expected to reach 6.7 per cent this year, higher than the National Assembly’s target of 6.5 per cent and the 5.32 per cent  level attained in 2009.

Specifically, the agro-forestry-fishery sector grew by 2.6 per cent, industrial and construction sector augmented by 7.6 per cent, and the service sector jumped by 7.5 per cent.

Vietnam’s GDP is  therefore reaching an average growth rate  of 7 per cent per year during 2006-2010. The GDP per capita is estimated to be around $1,160.

National Assembly Economic Committee chairman Ha Van Hien said Vietnam had effectively fulfilled targets prescribed in the National Assembly’s Resolution, which were to stabilise the macro economy and keep 2010’s economic growth higher than 2009.

He reported that 15 out of the National Assembly’s 21 targets set early this year had been reached and even outpaced.

Typically, export turnover is estimated to grow 19.3 per cent this year compared with the targeted over 6 per cent.

The government reported that Vietnam’s consumer price index for 2010 would increase about 8 per cent, showing a “big effort” given the complicated economic picture, though failing to meet the National Assembly’s target of 7 per cent.

According to the committee, state budget revenue in 2010 is estimated to exceed the initial target by VDN58.6 trillion ($3 billion) and up 17.6 per cent against last year. Budget collections from the non-state, state and foreign invested sectors augment by 37.5, 28.9 and 20.1 per cent year-on-year, respectively. It is expected that the state’s overspending will be equal to 5.95 per cent of GDP, lower than the targeted  6.2 per cent.

“These encouraging achievements result from the government’s sturdy and sound management policies coupled with concerted efforts of the whole political system, enterprises and the public. They will lay an important foundation for Vietnam to implement its socio-economic development plans for 2011 and 2011-2015,” Dung said.

The government said that Vietnam’s preceded tasks in 2011 would continue to focus on stabilising the country’s macro economy, bridling inflation and keeping steady economic growth at a rate of 7-7.5 per cent.

Next year’s GDP is planned to be $112.8-113.8 billion and the GDP per capita is targeted to be $1,300.

It is expected that the country’s total export earnings for 2011 would be $74.8 billion, up 10 per cent against 2010, while the total state budget collections would be about VND590.5 trillion ($31 billion).