“A Report on the 2011 Economic and Social situation, the 2012 and the Five-Year 2011-2015 Economic and Social Development Plan” was presented to the second session of the National Assembly, 13th Legislature, by Prime Minister Nguyễn Tấn Dũng in Hanoi on October 20, 2011. Following is the full text.
First Part
ON THE IMPLEMENTATION OF THE 2011 ECONOMIC AND
SOCIAL DEVELOPMENT TASKS
In implementation of the 2006-2010 Five-Year Plan, the economic and social situation had been affected by the special events and processes: (1) Vietnam joined the World Trade Organization (WTO) and deployed in depth all the commitments in the ASEAN and ASEAN+ free trade zone, creating great opportunities to attract investment and develop export and also posing the fierce challenges to the competitiveness of the economy which was in the shifting process and the possibility of responding by its policy to the complicated developments of the market; (2) The global financial crisis and economic recession together with the political upheavals in many countries in the world had made a negative impact on the country’s economic and social situation; (3) The adjustment of policy in order to respond to the world’s economic changes, from the fiscal and financial tightening to reign in inflation (in 2008) to the investment stimulus to accelerate the growth (2009) and the implementation of the tight and flexible monetary and financial policy to reign in inflation, stabilize macroeconomy and guarantee the growth (2010). At the same time Vietnam had to frequently cope with the plots to cause the political and social instability, the threats against national sovereignty and natural disasters and epidemics, causing heavy losses.
In the situation full of upheavals, there were still weaknesses and inadequacies in management though, with the exceeding efforts and creative dynamics of the entire people, of the whole political system under the correct leadership of the Party and the effective management of the State, we had overcome difficulties and challenges, responding effectively to the complicated developments of the situation, recording important achievements. The economy had seen relatively high growth, obtaining an annual average of 7%; the economic scope had increased and the economic and social sectors had grown; the people’s life had been improved with the poverty rate reducing fast; all the Millennium Development Goals (MDGs) had been implemented; progress had been made in social democracy and the national unity block had been continuously strengthened. Politics and society were stable; national defence, security and sovereignty had been maintained; international integration and foreign relations activities had obtained positive results. The position and international prestige of Vietnam had been constantly raised, creating the peaceful and stable environment for national development. Vietnam had got out of the underdevelopment status and entered the groups of developing countries with middle income.
However, the recorded achievements were yet to be on a par with potentials. The plan of some norms was yet to be achieved. There were still a lack of sustainability in economic development with quality, efficiency and competitiveness remaining low; macroeconomy was yet to be firm. All the limitations and weaknesses in the cultural, social and environmental areas were still slowly being dealt with. There were still hidden elements threatening the national sovereignty and causing insecurity and disorder.
Entering 2011, difficulties and challenges are greater than prediction. The prices of food and foodstuff, crude oil and materials in the world market have been raised; the stock exchange has plummeted; public debt crisis has happened in many countries; the world’s economic growth has become slower, inflation has been raised in almost all countries. All these have made negative impact on Vietnam’s economy. Domestically, the fiscal and monetary easing policy for many years to meet the requirement of economic growth, investment in infrastructure development and guarantee of social welfare and security have brought about important achievements, but have also caused the negative consequences. High inflation and interest rate; big trade deficit, deficit international balance of payment; sharp reduction of foreign exchange reserve have brought pressure to bear on the monetary market and exchange rate; the gold price in the market has seen unusual changes. Production and business have met with a lot of difficulties. The danger of macroeconomic instability has become a big challenge. The Government has analyzed carefully the situation, consulted with the experts and right in early February issued the Resolution No. 11 on the solution to the economic and social management in the new situation. The Political Bureau has made a Conclusion No. 02. The Government has reported and the National Assembly has released the Resolution No. 59 adjusting the targets, tasks and solutions to the 2011 economic and social development. These are the timely, correct policies, reflecting the new progress in development thinking and the possibility of responding by policy of the Party and the State, winning the people’s sympathy and support and international high appreciation. On the basis of the first 9 months situation and the year-end months forecast, the Government has valued the results of implementing the 2011 economic and social tasks through some of the following main contents:
1. Gradual reduction of inflation, positive change in macroeconomy
Thanks to the correctly determined tasks of giving priorities to curbing on inflation and efforts to synchronously implement the solutions in order to control prices, regulate supply and demand, stabilize market, the increase of consumer prices has gradually reduced since May 2011, a 16.63% increase in the first nine months and about 18% for the whole year.
With a tight fiscal policy, another 10% has been saved from the regular State budget spending, and at the same time, public investment has been reviewed, reduced and rearranged so as to be able to pool capital on the important, urgent or nearly completed projects; assorted business and individual taxes have been exempted and reduced. As a result, overspending of the State budget for the whole 2011 has been reduced down to 4.9% of GDP (the plan is 5.3%), while budget revenue has increased, meeting the demand of spending and reserving part of it for debt payment.
The Government has given guidance to implementing the tight and flexible monetary policy. It is estimated that the total outstanding credit debt is increased by 12%, the total debt instrument is increased by 12.5%. Priority is given to credit capital reserved for agricultural production, export, support industry and small and medium businesses. The loan ratio of the non-production area has reduced; credit interest rate tends to reduce. The foreign exchange market has changed for the better, the rate has become gradually stable, the status of foreign exchange of the banking system, foreign currency reserve and international balance of payment has been improved. The foreign currency buying and selling and gold business have been controlled with initial results. Public debt has been kept at a safe level. Food security and energy security have been guaranteed.
2. Production and business maintained and developed in difficulties
Together with the correct orientations, priorities in policy, the fierce management and the people’s creative efforts, agricultural production has been developed in a relatively comprehensive manner, reaching a record in food production and rice export, resulting in improving the farmers’ life and in having a value of agricultural production in the first 9 months being put at 4.1% and 3.6% for the whole year; the Industrial Production Index (IPI) in the first 9 months stood at 7.8% and 7% for the whole year; the services area continue to develop with a 6.42% increase in the 9 months and 6.4% for the whole year.
There is an increase in rice export while import is put under control. Trade deficit has sharply reduced and it is estimated at USD 10 billion for the whole year, equaling 10.5% of the total export turnover, lower than the goals mapped out in the plan (not more than 18%), making an active contribution to improving the balance of payment and stabilizing exchange rate.
In such a situation as having to reign in inflation, sharply reducing the credit growth, tightening the budget spending, the economy has still seen the continuous quarter on quarter growth with a 6% increase for the whole year.
3. Efforts pooled to guarantee social welfare and settle social urgent problems
In a condition when prices are high, natural disasters and epidemics have happened continuously, the Government has concentrated its guidance to guarantee social welfare. Together with priority being given to resources so as to carry out the existing policies and programmes, we have pooled our efforts to support the hunger elimination and poverty reduction work; create jobs in combination with job training; carry out the social support policy, particularly the support policy on overcoming difficulties and natural disasters; support people to join the insurance system and get access to basic social services; we have also issued a lot of new regimes and policies on social welfare or amended and added these policies in the direction of increasing the support level and expanding the beneficiary areas to help the poor people and low income earners together with the priority policy beneficiaries to overcome difficulties. In a condition of a limited budget, the State budget spending for social welfare is still raised to estimated 20% and the outstanding credit debt for implementing social policy has increased by 17% as against 2010. It is estimated to have created 1.54 million new jobs for the whole year, while the urban unemployment stands at 4%; the poverty rate is put at 1.5%. The programme of building houses for the poor, for students and for the people being hit by floods in the Cửu Long river area has obtained encouraging results. The number of people joining social, unemployment and health insurances has increased. The programme of national goals to build new rural areas has been paid attention to for deployment.
Efforts have been made to complete the criteria assigned by the National Assembly in the people’s health protection and care work, in the population and family planning, children protection and care and in gender equality. The preventive health activities have been actively deployed, particularly the epidemics prevention, and the vaccination programme has been intensified and expanded; the management of food quality, hygiene and safety has been enhanced. The rate of people who have contracted diseases and died of some contagious diseases has reduced as against 2010. No big epidemics have happened and food poisoning has reduced. Solutions to raise the quality of health examination and treatment have been actively deployed. The primary health system has been consolidated and developed. Attention has been paid to building and upgrading the network of hospitals with many projects being completed and put into operation, thus making a contribution to relieve the overloading in many hospitals. Socialization in the health care work has been pushed ahead and the non-public health centres with high tech examination and treatment have been encouraged to develop; health workers from the central institutions have taken turns to come and help the local health centres; medicines have been closely controlled and the traditional medicine has been developed.
Together with the completion and expansion of the scope of education and training as planned, efforts have been centered on guiding the implementation of many measures to raise quality as well as developing the contingent of teachers and managers; to renovate the teaching and learning methods; to deploy the practical mobilizations and emulation movements; to enhance the control of educational quality and build the State standardized schools; 35 training programmes to the standards of advanced countries have been deployed in many universities. All the secondary graduation examinations and the university entrance examinations have been satisfactorily organized. The rates of secondary education graduates and of school-age children going to school have been raised; universal education has obtained positive results; all the goals set for new recruits in education and training have reached and surpassed the plans. Active deployment of the job training programmes has been carried out, particularly for rural labour, while the training as required by society has also boosted. The programmes of building schools and offices for teaching staffs have obtained encouraging results.
Development has continued to be seen in the cultural, information and sports areas. All the domestic important political and social events, particularly the 11th National Party Congress; the elections of the National Assembly and the People’s Council at all levels have been disseminated far and wide; the curb on inflation, the macroeconomic stabilization, the social welfare guarantee and the struggle to protect national sovereignty have been also disseminated in a widespread manner; the large-scale projects and the national projected programmes to take Vietnam soon to become a strong country in information have been actively carried out, thus meeting the people’s information requirements and intensifying the application of information technology in the operations of the State agencies. The people’s right to mastery has been promoted and the citizens’ right to freedom has been ensured. A lot of cultural activities have been deployed, while all the festivals have been increasingly controlled and the movement titled “The entire people unite to build a cultural life” has been actively implemented. Attention has been paid to literature and art, to preservation and promotion of cultural heritages and the culture of ethnic nationalities; the cultural institution and mechanism have been built. The Strategy of Sports Development has been actively carried out.
Many solutions to get breakthrough in traffic congestions and accidents and to resolve the waterlogging problems in the cities have been carried out and reached specific results. Traffic accidents in the first 9 months of the year have reduced against the same period last year as far as the number of the dead and the injured is concerned.
4. Positive results in scientific and technological activities; attention paid to environmental protection
Mechanism and policy on the scientific and technological management continue to be renovated. Considerable progress has been made in the scientific and technological researches. The technological market has step by step developed with the value of technological buying and selling in 8 months of 2011 increased by 76% over 2010. The system of scientific and technological organizations has been consolidated and improved in the direction of shifting to the self-support mechanism or to the business form. The co-operation and investment activities with foreign partners have been encouraged. A lot of large programmes and projects on renovation and development of national technology have been deployed; productivity and quality of Vietnam-made goods have been raised; intellectual property has been supported for development; scientific and technological progress has been applied in rural and mountainous development, striving to take Vietnam to become a strong country in some scientific and technological areas. The National Scientific and Technological Development Fund has been managed effectively. All the technological exhibitions and fairs have brought about the practical results.
Guidance has been made to temporarily stop granting licences to mineral activities, while starting to examine and assess the actual situation and perfect the managerial mechanism to guarantee the economic, social, environmental and national defence effects. All the measures to guard against environmental pollution have been taken; all the violations have been examined, inspected and treated and all the establishments that have caused serious environmental pollution have been treated severely. All the stipulations on assessment of environmental impacts and the commitment to environment and the treatment of hard wastes have been issued and actively implemented. As of today, 83% of the rural population has used sanitary water, 78% of urban population has used clean water. Importance has been attached to forest plantation and protection. As a result, until late 2011, 40.5% of forest land has been covered. The National Goal Programme and Action Plan in response to climate change have been actively deployed.
5. Practical results in administrative reform and effective guidance in corruption combat
All the State agencies from the Government to administrations at all levels in their new tenure have rapidly perfected and synchronously and comprehensively deployed a lot of development mechanism and policies, thus creating positive atmosphere in management and in the economic and social life. All the ministries, branches and localities continue to push ahead the streamlining of administrative procedures, resulting in completing more than 3,000 procedures out of over 5,000 procedures that need streamlined, reaching 68%, further facilitating the production and business activities of businesses and citizens’ transaction.
The anti-corruption work continues to receive attention and guidance and has achieved practical results. The deployment of the movement to study and work in accordance with Hồ Chí Minh’s moral example in combination with the propaganda and the political and ideological education have made a contribution to raising the consciousness of cadres, Party members and people about the combat against corruption and waste.
6. Politics and society are stable; the national defence and security are maintained; the foreign relations have achieved positive results
The success of the 11th National Party Congress, of the elections of the National Assembly and the People’s Council at all levels have created the consensus and motive force to push ahead the national development. Attention has been paid to guiding the intensification of the national defence potentials, raise high the fighting power of the army and public police and defend firmly national sovereignty and security. Attention has been paid to combating and protecting crimes, achieving a lot of results, making a contribution to ensuring the social security, order and safety. The amnesty work has been satisfactorily carried out.
The foreign relations and international integration has earned a synchronous and comprehensive concern and guidance and achieved positive results, making a contribution to raising the position and prestige of Vietnam on international arena, creating favourable conditions to the national protection, construction and development.
However, apart from the recorded achievements, the Government has also seriously recognized a lot of weaknesses and inadequacies. Some important indicators of the 2011 economic and social development plan are yet to be fulfilled. Macroeconomy is yet to be stable; inflation and credit interest rates remain high; bad debts in the banking system have increased and liquidity of some commercial banks is found difficult; foreign exchange reserve is low with great pressure of exchange rate; the stock exchange and real estate markets have plummeted. Production and business have met with a lot of difficulties. The renovation of growth model and the economic restructure have been implemented in a slow manner. There are still a lot of inadequacies and urgencies in the cultural and social areas. The life of people, particularly of the poor people, of the social policy beneficiaries, of the low income earners and of the ethnic minority people has still met with a lot of difficulties. Corruption and waste are yet to be pushed back. Traffic congestion and accidents are still serious with the number of the dead and the injured increasing as against the previous year; crowded claims and strikes have happened in many places; crimes and social evils are yet to reduce.
The said situation is due to the objective reasons with the heavy, complicated impacts of the global financial crisis and economic recession, to the subjective reasons with the internal weaknesses of the economy with the less effective growth model and the economic and investment structures being accumulated for many years and slowly resolved and to the limitations and weaknesses in leadership and management, particularly in the macroeconomic management, in the administration of the financial and monetary policies, the management of public investment, of the State-owned businesses and of resources and in giving guidance to resolve the complicated social problems. To overcome the shortcomings and weaknesses and to guarantee the sustainable development, excessive efforts and high determination are needed from the whole Party, people and army, from the whole political system in 2012 and the years to come.
Second Part
GOALS, TASKS AND SOLUTIONS TO THE 2011-2015 AND 2012
ECONOMIC AND SOCIAL DEVELOPMENT
We are fulfilling the 2012 and the 2011-2015 tasks in the background that the world has been experiencing so fast and unpredictable development. The world’s economy has developed complicatedly with a lot of hidden elements threatening the global stability and economic growth. This situation will affect negatively our economy. Domestically, apart from the achievements, there are still problems and weaknesses which are unable to be done away with in a short time. This is very great difficulties and challenges to our country.
However, the great, comprehensive achievement in the past 25 years of renovation together with the stable political and social system and the consensus of the entire people, the advantage of a country which is in the process of industrialization with the potential agriculture and the domestic market of 90 million people with an ever increasing purchasing power are the fundamental advantages in fulfilling the 2012 plan and the years to come of the Five-Year Plan.
I. GENERAL GOALS OF THE 2O11-2015 AND THE 2012 ECONOMIC AND SOCIAL DEVELOPMENT
It is difficult to forecast the world’s economic situation, on the other hand we have just completed one year of the 2011-2015 Plan, so it is necessary to continue to reaffirm the general goals worked out by the 11th National Party Congress for the 5-year period: To develop the economy fast and sustainably in combination with the renovation of the growth model and the economic restructure in the direction of raising the quality, efficiency and competitiveness. To ensure social welfare, raise the people’s spiritual and material life. To intensify the activities of foreign relations and raise the effectiveness of international integration. To defend firmly independence, sovereignty, reunification, territorial integrity and social order and safety. To create the foundation so that by 2020 our country will basically become a modern-oriented industrialized country.
In the years of 2012 and 2013, it is necessary to continue to implement swell the policies in the spirit of the Conclusion No. 02 of the Political Bureau, the Conclusion of the 3rd Plenum of the Party Central Committee and the Resolution No. 11 of the Government in conformity with the situation at home and abroad; to create the proactivity to be able to stabilize further the macroeconomy in late 2013. For the remaining years of the Five-Year Plan, it is necessary to take advantage of the favourable conditions of the world’s economy to promote internal strength, concentrate all efforts to strive to achieve the goals worked out by the National Party Congress in the Five-Year Plan.
The general goals of 212 are: To give priority to reigning in inflation, stabilizing macroeconomy, maintaining the growth at the reasonable level in combination with the renovation of growth model and the economic restructure, raise the quality, efficiency and competitiveness; to guarantee social welfatre and improve the people’s life; maintain the political stability, consolidate the national defence, guarantee security and social order and safety; raise the effectiveness of the foreign relations work and international integration.
In the process of carrying out these goals, it is necessary to promote further the role of decisive significance of the State in creating and regulating the development of the socialist-oriented market economy to be in conformity with the concrete conditions of our country.
II. ON THE MAIN INDICATORS
1. The economic indicators
- The inflation indicator: In 2012, it is striving to reign in inflation to below 10% and lower in the years after that so that in 2015, inflation will hopefully be at 5% to 7%.
- The indicators of GDP increase: In 2012 GDP will increase by 6% to 6.5%. To be proactive in responding to the complicated development of the situation and concentrate on the task of stabilizing macroeconomy, the Government has proposed the management in accordance with the plan of 6% growth rate and when the conditions are favourable, it will strive to reach the 6.5% level.
In the 2011-2015 stage, average growth will be 6.5% to 7%, but the 7% level is the goal to reach.
- The indicators on the State budget overspending and public debts: In 2012, the State budget overspending will occupy 4.8% of GDP and the years after that it will be reduced gradually so that until 2015, it will be lowered to 4.5%.
By 2015, public debt will account for 60% to 65% of GDP.
- The total export turnover in 2012 is estimated to increase by 12% to 13% as against 2011; trade deficit will be 11.5% to 12% out of the total export turnover. Efforts will be made to cut down trade deficit to 10% by 2015.
- The total investment capital for social development: In 2012 it will be about 33.5% to 34% out of GDP. On average in five years, it will be 33.5% to 35% out of GDP.
2. Social and environmental indicators
It is persistently advocated to have sustainable development and strive to reach the social and environmental indicators as mapped out by the 11th National Party Congress.
The Government has proposed to add some indicators reflecting the growth quality in the Five-Year Plan: Social labour productivity; the density of high tech product within the value of industrial production; reduction of energy consumption over GDP; the labour ratio through training; the ratio of technological innovation; and the element of general productivity contributing to growth as mentioned in the Governmental report submitted to the National Assembly.
Based on the actual situation, every year the Government submits to the National Assembly for consideration of decision on the specific plan of growth and the corresponding main indicators.
III. THE MAIN TASKS AND SOLUTIONS
1. Efforts are focused on giving priority to reigning in inflation, stabilizing macroeconomy and ensuring major balances of the economy
In 2012, stabilizing macroeconomy should be regarded as an important foundation for the implementation of the tasks of the 2011-2015 stage with the central task of controlling inflation, stabilizing price market, improving balance of payment and striving to reduce the budget overspending.
On inflation, there are outside reasons due to the increasing import prices of materials and due to the adjustment of the increasing prices in accordance with the roadmap of some items of goods and services; but the main reason to cause high inflation in our country is due to the consequences of the fiscal and financial easing policy that has lasted for many years to meet the requirements of investment and development, guaranteeing social welfare while the economic and investment structure are less effective; together with the limitations in management and the resonant impacts of the psychological elements. To reign in inflation, we must resolutely overcome the above-said reasons.
The Government holds that the monetary policy should be closely, carefully and flexibly managed in accordance with the market signal; the monetary policy and the fiscal policy should be harmoniously combined to control inflation, guaranteeing the increase of the total payment tool and the annual credit debt increase should not be over the level already mapped out in the Resolution No. 11. It is necessary to keep the reasonable interest rate, to be proactive in managing exchange rate without causing any big changes. Credit activities of the commercial banks should be closely supervised; production capital should be ensured; loaning to real estate and stock exchange businesses should be closely controlled; bad debts should be controlled, liquidity and safety of the banking system should ensured.
The fiscal policy should be closely carried out, striving to reduce the budget overspending. The frequent expenditure should be saved. The list of public investments should be reviewed and rearranged, the effectiveness of the use of capital should be raised and part of the State investment should be transferred to the investment from other sources. The effectiveness of investment and business of the State-owned businesses should be closely controlled and public debt should be ensured at the safe limit.
The State management of prices should be intensified. Any act of raising prices unreasonably, particularly prices of important materials and essential items of goods should be resolutely stopped and treated. The roadmap to adjust prices of items of goods in accordance to the market mechanism should be continued and the prices of these items of goods should be made public with transparency, at the same time there should be mechanism to support the poor and the priority policy beneficiaries. Propaganda should be enhanced to limit to the maximum the price increase due to the psychological element.
All the solutions should be synchronously implemented to reduce trade deficit and improve the balance of payment. Export should be intensified with domestic content and value addition of products being increased; production of import substitutes should be developed effectively; all the items of goods that are not encouraged to import should be closely controlled. Speed of disbursement of ODA and FDI capital should be quickly enhanced along with the control and stop of price transfer and tax avoidance. All the flows of foreign indirect investment capital should be closely controlled, thus facilitating the increase of international tourists and remittances of overseas Vietnamese.
2. Priority is given to resources to carry out three strategic breakthroughs, restructure the economy, renovate growth model in the direction of raising effectiveness and ability of competitiveness
It is advocated to carry out consistently the renovation of growth model from development in width to development in depth, from relying on mainly the increase of investment capital, exploitation of natural resources and low-quality labour to relying on the effectiveness, productivity, quality and competitiveness of the economy on the basis of applying new scientific and technological achievements, high tech resources and skills of modern management. This is an urgent, basic and long-term task that needs being synchronously implemented in combination with the strategic breakthroughs in accordance with a general programme.
The mechanism of mobilizing the resources should be perfected to implement the breakthroughs in accordance with the reasonable roadmap. Priority is given to the areas and projects that can make highly spreading impact, thus creating premises to the economic restructure. From 2012, it is necessary to focus on three key areas: to restructure investment, first of all, public investment, making a contribution to pushing ahead the restructure of economic branches and redistribution of production forces in each territorial area; to restructure the State-owned businesses, mainly the groups and corporations; to restructure the monetary and financial system, mainly the commercial banking system and the financial institutions.
The thinking of investment should be renovated, the structure of public investment should be step by step adjusted in the direction of gradually reducing density and raising effectiveness; the situation of widespread investment should be resolutely overcome and other sources of capital should be mobilized for development. In 2012, the conclusion of the third plenum of the Party Central Committee and the directive of the Governmental Prime Minister on intensification of management of investment from the State budget and government bonds should be seriously implemented and all the investments of businesses should be closely controlled. The mechanism of distributing investment capital should be renovated; capital should be resolutely focused for the necessary projects so as to be able to put them into quick operation to promote effectiveness. Priority is given to allocate capital to the projects which are completed and put to use, to the projects which need being completed in 2012 and the corresponding capital to the ODA projects. All the newly started projects should be closely controlled with capital sources clearly determined, effectiveness and all necessary investment procedures guaranteed. As for the projects being invested with the State budget capital and the Governmental bonds without being able to continue because of the lack of capital source, these projects should be transferred to other forms of investment or temporarily suspended.
The amendment of the regulation on decentralize the investment management should be urgently carried out, first of all, the investment from the State budget and the Governmental bond in the direction of guaranteeing the uniform management of the Central government concerning the objectives and the list of programmes and projects in accordance with the plan; at the same time dynamism and creativity of localities in investment and development should be promoted. The balance of investment capital in the medium term plan should be carried out. Attention should be paid to the investment restructure of the private and foreign investment areas through the perfection of the system of mechanism, policy and orientation to attract investment, raise the planning quality and investment should be resolutely implemented as planned. The source of ODA capital should be managed and used effectively.
The process of equitization and rearrangement of the State-owned businesses should be rapidly accelerated. All the efficiencies of the operations of the economic groups and corporations should be reviewed and evaluated in a comprehensive manner. The State-owned groups and corporations only concentrate on the main business lines; the divestment of State capital in the businesses which the State does not need to govern and the divestment of capital already invested in the activities outside the main business lines should be resolutely implemented. There should be plans to perfect the businesses with losses. The model of organization and administration in the 100% State-owned businesses should be renovated; at the same time, all the stipulations on the right to represent the owners and the managers in the businesses with State capital, on the mechanism of managing the State assets in businesses and on the mechanism of supervision, examination and sanctions. All the results of operations of the State-owned businesses should be openly made public; the State-owned businesses should be placed in a healthy competitive environment with businesses of other economic sectors. At the same time, there should be mechanism and policy to accelerate the restructure of the private businesses.
All the commercial banks and the financial and credit institutions should be restructured in the direction of an increase in scope, a fast reduction in quantity of poorly operating banks and credit organizations, an improvement of credit quality and development of banking services. There should be mechanism and policy so that the banks could have conditions to develop and expand their operational scope and be strong enough in the domestic and international competition. Bad debts should be well controlled, liquidity should be ensured and the commercial banking system should be safely maintained. It is determined to overcome the state of dolarization; the order and discipline in using foreign currency should be established; the value of Vietnam dong should be raised. The real estate and stock exchange, gold and foreign exchange markets should be effectively managed. The ratio of supplying capital to investment and development from commercial banks should be gradually reduced and the density of capital mobilized from the stock exchange market and from business bonds should be increased.
3. Difficulties are to be overcome to create conditions for businesses to develop production and business and expand market
While implementing the tight financial and monetary policy to reign in inflation, it is necessary to concentrate to push ahead production, develop services and attract investment. Vigorous development of production and business is the fundamental and long-term solution, creating direct, multi-faceted results to the economic and social life; the source of supply of goods and services should be guaranteed to be served as both the root of growth and the direct contribution to reigning in inflation and reducing trade deficit. Special attention should be paid to overcoming difficulties so as to guarantee enough capital and foreign currency for production of goods and products which are a great demand of the domestic market and export. The sources of investment, particularly the investment projects of high tech production and of great export value, should be attracted and rapidly disbursed.
The mechanism and policy to mobilize the resources for development and increase of investment effectiveness should be perfected; the forms of investments should be diversified such as BOT, BT, BTO; the forms of PPP should be intensified to develop infrastructure of great scope in order to create a breakthrough in this important area.
The possibility of getting access to capital by businesses should be improved. Credit priority is to be given to the key products. The tax instrument should be used in a flexible and effective manner to conform to international commitments so as to help businesses to overcome difficulties, develop production, increase export and reduce trade deficit. All the stipulations and administrative procedures should be reviewed and amended to create more favourable conditions to people and businesses. The services to support the business start-up should be developed. The trade promotion activities to expand market and increase export should be accelerated. Importance should be attached to the domestic market, particularly the rural and mountainous market and the movement of the Vietnamese giving priority to using the Vietnam-made goods should be pushed ahead.
There should be practical and effective solution to promote the potentials and strong position of agriculture. Efforts should be focused on overcoming difficulties to support and encourage the development of agricultural production in combination with the development of the processing industry. The models of large-scale agricultural production with high technology and modern managerial technology should be expanded; all the production, processing and distribution links should be closely combined to as to form a value chain, considering it the fundamental orientation to modernize our country’s agriculture and guarantee the interests of the farmers. The land for rice planting as planned should be firmly maintained so as to guarantee food security. There should be reasonable policy to support the delta areas specializing in rice planting and processing and other farm produce, meeting the domestic and export requirements. Implementing the programme to build new rural areas should be promoted and the criteria should be perfected to be in conformity with each area.
The structure shift should be boosted and the industries with high tech content, great added value and a lot of products for export should be developed. Attention should be paid to developing the key engineering industry and support industry. The forms of recycling energy should be developed along with the technological innovation in the direction of saving materials and energy. The planning of the economic zones and the industrial zones should be reviewed so as to overcome the state of spreading investment and waste. The management of the border gate economic zones should be intensified and the state of trade frauds and tax evasion should be stopped.
The development of service areas with potentials and advantages, the high value added services, particularly the information and communications services, the educational, training, logistics, tourism, financial and business support services should be accelerated. The strategy for tourism service development should be effectively implemented.
4. Social welfare continues to be cared for and the pressing social issues to be resolved
The development of the cultural and social areas, the care for social welfare and the settlement of pressing social issues are both the goals and the requirements of sustainable development. The State gives priority to investment and at the same time to pushing ahead the socialization and mobilizing the international resources for development.
The Strategy of Social Welfare in the 2011-2020 period and the National Target Programme on Sustainable Poverty Reduction should be actively carried out. It is trying to reduce 2% of the poor households each year and reduce more vigorously in the poorest districts. Implementing the job training programme, particularly the job training for rural labour, should be intensified, in combination with the process of the structure shift in the agricultural and rural economies. It is striving to create new jobs each year for 1.6 million labourers. The policy on the people who have done great services and the policy on social support should be well carried out; active support should be given to overcome natural disasters; the policy on social insurance and unemployment insurance should be well carried out; it is striving to implement the whole people health insurance by 2014 and actively implement the National Programme on Labour Safety and Hygiene.
The quality of health examination and treatment and the care for the people’s health should be raised. That health workers take turn to go to local hospitals should be implemented. The primary health centres should be consolidated and developed; the renovation, upgrading and building of the hospitals should be accelerated. The financial and managerial mechanism and the policy on hospital fees in the public health centres should be renovated; investment in developing the non-public health centres and high tech health examination and treatment stations should be encouraged; the preventive medicine should be actively deployed and big epidemics should be stopped from happening; the management and prevention of the non-contagious, dangerous diseases should be accelerated; the solution to improve the people’s health and raise their longevity should be implemented. The ability of supervision, discovery and control of epidemics, particularly HIV/AIDS and the new arising epidemics should be raised. The State management of medicines should be enhanced and the prices of medicines should be closely controlled. The research and production of medical equipment, medicines, vaccines and medical products should be promoted; the traditional medicine should be developed.
Education and training should be vigorously developed, creating a breakthrough in raising the quality of human resources. Efforts are to be focused on implementing the Strategy of Educational Development and the Planning of Human Resources Development in the 2011-2020 phase. It is urgently to review and perfect the planning of the system of educational and training establishments. The management of education should be renovated along with the renovation of the content, curricula and the teaching and learning methods; the inspection and examination should be enhanced to raise the comprehensive educational quality, particularly the university and vocational training education. The financial mechanism should be perfected and the educational socialization be accelerated. Attention should be paid to developing the education in the remote and difficult areas. Training as required by society should be enhanced.
The movement titled “The entire people unite to build a cultural life” should be effectively implemented. The Strategy of Sports Development should be implemented and the socialization of cultural and sports activities be intensified. All the festivals and cultural and art and sports activities should be managed so as to guarantee thrift, security and order and at the same time to maintain the good morals and good customs and the national cultural identity. The big projects and the national target programmes in the information and communications areas should be deployed; the quality of the information, press and publishing activities should be raised. The right to mastery should be promoted and the citizens’ right to freedom should be guaranteed and at the same time the order and discipline should be enhanced. All the policies on nationalities and religion should be well carried out. The National target Programme on Gender Equality should be deployed actively and the mother and child care and protection should be well carried out.
The solutions to treat traffic congestions should be satisfactorily implemented so as to guarantee the traffic order and safety. All kinds of crimes and social evils should be contained and stopped effectively.
5. Development of science and technology is to be enhanced and environmental protection and improvement are to be intensified
Mechanism and policy and the organization of the scientific and technological managerial apparatus should be renovated synchronously. The knowledge-based economy should be developed and the economic restructure and the shift of growth model should be accelerated and the competitiveness of the economy should be raised. The scientific and technological programmes and plans at the national level should be deployed. The scientific and technological innovation and development funds should be managed effectively. The policy on developing the scientific and technological businesses should be perfected; businesses are encouraged to renovate technologies, particularly high technologies, the material and energy saving technologies. The research and application activities should be combined with production and technological transfer. The scientific and technological services, particularly the information, consultancy, brokerage, technological evaluation, intellectual property, technical criteria and standards services, should be vigorously developed. The system of the scientific and technological application centres should be developed and perfected.
The institution and efficiency of the State management in the protection of natural resources and environment should be concentrated. Decentralization of management should be combined with holding high the responsibility and at the same time the examination and inspection and treatment of violations, particularly the resources mining activities should be accelerated. All the violations and the projects that do not meet the environmental requirements must be seriously treated. The different economic sectors are encouraged to make investment and scientific and technological application in environmental improvement, collect, treat and recycle the wastes. The large-scale programmes and projects of environment, particularly the clean water and environmental hygiene projects should be deployed effectively; the water resource should be managed and used in a sustainable manner; forests should be protected and developed and biodiversity should be preserved; waste and the establishments that cause serious pollution should be well treated; climate change and sea water rise should be responded effectively.
6. Efficiency of State management is to be raised and anti-corruption combat is to be enhanced
The administrative reform programmes should be effectively implemented with attention being paid to reforming the institution and administrative procedures, thus creating favourable conditions to businesses and people. The institution of market economy, particularly the financial and monetary market and the real estate market, should be perfected. The Land Law should be amended, guaranteeing the right of the State in collecting land for development purposes, treating harmoniously the interests of the land deliverers and the land receivers in investing in production and business. Importance should be attached to social debates, the consultation of the opinions of the people, the business community and the experts should be promoted to build the institution and the responsibility of explanations by the State agencies should be enhanced.
The national competitive index and the economic freedom index should be analyzed and appraised and the weaknesses should be overcome in an attempt to strive to get the lift of the State’s confidence rating.
The organization and the mode of operation of the State apparatus should be continued to be renovated. The mechanism of governmental officials management should be perfected, the title and criteria of each position should be clearly stipulated, the responsibility, rights and obligations and interests should be clearly defined. The institution of treating violations of government officials should be perfected. The salary system and the policy to encourage government officials should be renovated.
The planning quality should be raised and development in accordance with the planning should be managed; the inter-sectoral and inter-regional character should be guaranteed. The mechanism of decentralizing management between the Central government and the local administration should be reviewed and perfected; decentralization should be combined the strengthening of examination, supervision and self-responsibility. The responsibility of the leader should be raised.
The propaganda and mobilization should be boosted and a specific institution is needed to raise the high sense of practicing thrift and combating waste. The solutions to combat corruption should be synchronously implemented while the measures to guard against it should be carried out in a concentrated manner. The institution should be reviewed and perfected, the complacency and openness should be enhanced in the operation of the State apparatus. All the violations should be treated in time, seriously and lawfully.
7. National defence and security are to be intensified and the efficiency of the foreign relations is to be raised
The solutions should be effectively carried out to promote the general strength to defend firmly territorial sovereignty and national security. Defence and security capabilities should be step by step intensified; the all people’s national defence posture and the people’s security posture should be consolidated. The discovery and prevention of all the hostile forces’ schemes of causing sabotages, disorders and riots should be carried out proactively. The National Programme on the Fight and Prevention of Crimes should be carried out effectively.
The foreign relations and international integration should be intensified. The State diplomacy should be closely combined with the Party’s foreign relations and the people’s diplomacy. It is necessary to be proactive in joining with responsibility the regional and global mechanisms, creating favourable environment to mobilize effectively the outside resources for the national construction and defence. The propaganda and foreign information should be enhanced to introduce and popularize the national cultural identity and the national image. Conditions are to be created to support people living and working abroad and to act as a friendship bridge between Vietnam and other countries. The community of overseas Vietnamese in foreign countries is encouraged to make practical contributions to the national construction and development.
Dear deputies of the National Assembly,
We are striving to implement and obtain the highest results of the remaining tasks of 2011, the year we have to face with a lot of heavy difficulties and challenges. Entering 2012, apart from advantages, we will have to face with so many new difficulties and challenges, demanding the entire Party, army and people and the whole political system to join forces with determination and the spirit of renovation and the highest creative capabilities. All the levels, branches and units should deploy urgently the task of the 2012 Plan right after it is approved by the National Assembly; select the right key points and carry out well the political and ideological, information and propaganda work, create consensus in society, striving to implement successfully the 2012 Plan and the 2011-2015 Plan worked out by the 11th National Party Congress./.
Source: Cục Thông tin Đối ngoại
