Prime Minister Nguyen Tan Dung Thursday admitted Vietnam was “likely” to miss this year’s economic growth target of 7 percent.

Earlier this year the National Assembly revised this year’s economic growth target from 8.5 percent to 7 percent. GDP growth was 6.52 percent in the first nine months of this year.

Next year, Vietnam should also try to limit inflation to below 15 percent and bring the consumer price index (CPI) down to a single figure by 2010, Dung said.

The Prime Minister said the full-year CPI figure this year was expected to be 24 percent.

Other economic targets Dung recommended for 2009 included a GDP of US$106 billion, which equated to a GDP per capita of $1,200. This year the country’s GDP per capita is forecast to reach just over $1,000 per person.

“The 2009 overall socioeconomic target is to continue to put priority on inflation control, actively minimize negative impacts of the financial crisis and the global economic recession, ensure macroeconomic stability, implement improved social welfare, remain stable socioeconomic growth, keep political stability and ensure national defense, security and social order,” Dung told the opening day of the fourth National Assembly session this year.

Dung said Vietnam should aim for 8 percent growth in the industry and construction sector, 7.8 percent growth in the service sector and 3 percent growth in the agriculture, forestry and fisheries sector next year.

The Prime Minister said Vietnam should seek to increase its exports of processed items and reduce imports of raw material in order to meet a targeted trade deficit of $20.7 billion in 2009.

The nation should also try to reduce its poverty rate to 12 percent and generate jobs for 1.7 million people, he said. The jobs target included a component of 90,000 workers to be sent abroad for work.

Vietnam is forecast to generate export revenues of $65 billion this year, up 33.9 percent on 2007, the biggest increase in the past decade. The nation is also expected to lure foreign direct investment (FDI) of more than $60 billion, triple that of 2007.

According to a NA Economic Commission report on Vietnam’s socioeconomic development, the country, despite posting high export growth, has seen little change in the types of goods exported, mainly raw minerals, semi-processed commodities, farm products and goods with low added value.

In addition, the country’s trade deficit is still high, estimated at $19 billion in 2008, equal to 29 percent of export earnings and 21 percent of GDP, he said.

While economic growth was a priority, Dung said the government would also work to improve its social welfare policies to assist the nation’s poor and ethnic minority groups.

The government will also increase funding to the fields of education, health, culture and environmental protection, and accelerate administrative reforms and anti-corruption measures.

Special consumption tax

The National Assembly also considered legislation to amend some consumption tax rates Thursday.

Motorbikes with capacity greater than 125 cubic centimeters, aircraft and yachts used for non-business purposes, slot machines and betting services are likely to be subject to higher tax rates.

These items were all “luxury” products consumed by high-income earners only, Minister of Finance Vu Van Ninh said when he submitted the draft bill to the parliament.

The tax on large motorbikes will encourage economical use of fuel and contribute to reducing pollution, he said.

Others items included in the tax bill include products made from tobacco besides cigarettes and cigars and automobiles that run on biofuel, solar energy and electricity, Ninh said.

Under the draft law, the motorbikes would attract a tax rate of 20 percent and aircraft, yachts, slot machines and betting services 30 percent. The rate on tobacco products would be 65 percent.

Cars running on electricity or solar energy would attract 10-30 percent of the rates imposed on vehicles using traditional fuels, hybrids 70 percent and those running on bioenergy 50 percent. The draft also envisages amending the tax rates on a range of other products. Wine and other beverages with alcohol content of 20 percent upward will be taxed at 50 percent instead of the current 30-65 percent.

The tax on beer will be 45 percent in 2010-2012 period and 50 percent from 2013 instead of the current 40-75 percent.

Cars with nine seats or less will be taxed at 40-60 percent depending on engine capacity and those with 10-16 seats 30 percent. Under the existing regime, vehicles with five seats and less attract 50 percent and those with 6-15 seats 30 percent.

Taxes on discotheques, massage services and karaoke will also be raised to 40 percent from the current 30 percent. At casinos, slot machines and betting services will attract a tax of 30 percent, up from the current 25 percent. The tax on golf services will be doubled to 20 percent.

Reported by Bao Van