A cabinet meeting.

The ministers shared their optimism about the prospects for the national economy at a monthly meeting in Hanoi on August 4-5. Their views were based on the impressive socio-economic achievements over the past 7 months and green shoots in the global economy.

They said that the country’s industrial sector achieved a steady growth over the past 6 consecutive months, except for January. In July alone, total industrial production value reached more than VND59 trillion, up 2.3 percent against June. Despite the global economic recession, Vietnam has still attracted 510 foreign investment projects, capitalised at over US$10 billion.

The cabinet members maintained that the national economy has overcome some difficult times but has shown signs of recovery. Therefore, they said that Vietnam should prepare a scenario to seize opportunities and respond to challenges in the post-crisis period.

Prime Minister Nguyen Tan Dung said the encouraging achievements over the past 7 months have created a prerequisite for Vietnam to overcome its difficulties and meet the targets set for this year. However, he asked all ministries and localities to keep a close watch on domestic and global developments to promptly introduce effective policies.

The Government leader pointed out weaknesses in the national economy, saying that the 7-month exports fell by over 13  percent from a year earlier, the disbursement of investment capital, especially the sales of government bonds, was still too slow, and epidemics continued spreading.

He asked all ministries and localities to go ahead with the investment and spending stimulus packages, from implementing flexible financial-monetary policies to reducing/exempting taxes and providing assistance to the poor.

It is not the right time to adjust the economic stimulus policies as they have just started to pay off, said Mr Dung, adding that “The crux of the matter is how to make the best of these packages.”

He urged provinces and cities to boost agricultural production, seeing it as an important factor behind national stability. It is also essential to diversify exports, expand overseas markets and increase rice and Tra fish exports.

He emphasised the need to speed up the disbursement of investment capital for national development, including capital from the State, Government bond sales and ODA.

An important task is to closely oversee the quality of key construction projects to prevent waste, especially Group A projects such as hydroelectric dams, power and cement plants, he said.

He insisted that the designated agencies adopt practical programmes to assist the 61 poorest districts, control the A/H1N1 influenza epidemic, protect forests and deal with environmental pollution caused by sewerage and rubbish.

He asked the trade sector to keep the milk market in check, the central bank to control gold trading floors, and the transport sector to speed up land clearance for key projects in Hanoi.

At the meeting, the ministers also discussed a draft decree governing the establishment, organisation, operation and management of economic groups, and a number of bills.