It suggested 7.5 percent if the world economy showed signs of recovery, and a third plan envisaged 6.5 percent growth if the world economy fell into recession and global inflation worsened.

Minister of Planning and Investment Vo Hong Phuc said the NA would opt for 7 percent.

Phung Quoc Hien, chairman of the NA’s Finance and Budget Department, concurred saying the 7 percent growth target is suitable.

It would be difficult to aim any higher because Vietnam might face high inflation and possible decrease in remittances by overseas Vietnamese due to the US economic woes.

As for the impact of the US financial crisis on exports, Phuc felt it might not be major because Vietnam’s exports to major markets like the US and Europe were of essential goods like cooking and garments.

Hien said more attention had to be paid to the budget deficit and asked the government to work out measures to curb it in 2009.

He said the deficit was 2.63 percent in 1991-1995, 3.87 percent in 1996 – 2000 and 4.95 percent in 2001 – 2007.

Internationally, it would be a major concern if the deficit reached between three and five percent, said the chairman.

Minister of Finance Vu Van Ninh said the indexes show that Vietnam’s stock market is under control and not experiencing a bubble development.

Reported by Xuan Toan