LookAtVietnam – The chairman of the National Assembly, Nguyen Phu Trong, has said that the Vietnamese economy has reacted positively to the Government’s package to stimulate it.

At the 12th NA’s fifth session deputies will discuss six draft laws and consider for approval another 12 draft laws among other important tasks.

Trong said the positive results were due to the leadership and direction of the Party arid State as well as the determination of the business community.

Attending the ceremony were Party General Secretary Nong Duc Manh, President Nguyen Minh Triet, Prime Minister Nguyen Tan Dung, former Party General Secretaries Do Muoi and Le Kha Phieu, former President Tran Duc Luong, former Prime Minister Phan Van Khai, former National Assembly Chairman Nguyen Van An, revolutionary veterans and representatives of diplomatic corps.

Trong said that the timely introduction of the financial and consumer stimulus packages was effective. GDP growth rate in the first quarter was 3.1 per cent and inflation was contained.

However, he reminded the deputies of the economy’s shortcomings and the effects of the downturn, which would have a major impact on the implementation of the country’s socio-economic tasks.

Addressing the opening ceremony, Chairman Trong spoke about the complications of the world economy at a time of financial crisis and shrinking trade and investment.

Viet Nam’s production, trade, export, investment, jobs, and State revenues had met difficulties due to the economic downturn, Trong said.

He said the quality of National Assembly sessions would be improved by increasing the responsibility and quality of the Council for Nationalities, NA committees, and relevant agencies.

Deputy Prime Minister Nguyen Sinh Hung said the tasks ahead would be difficult and required the determination of the entire nation.

Hung presented the Government’s report to NA deputies, highlighting items that needed special attention, such as the effective implementation of investment and consumer stimulus packages, the prevention of economic downturn and reasonable growth rate recovery.

The country’s GDP growth rate target should be reduced to 5 per cent from 6.5 per cent and the budget overspending should be allowed to reach a maximum of 8 per cent, up from the set rate of 4.82 per cent.

The Government proposed to issue additional bonds with value of VND20 trillion (US$1.1 billion).

The Deputy Prime Minister said that the Government was determined to enhance its management capacity and implement the NA’s resolutions well.

The Government said the country would fulfil its goals by mobilising its strength and taking full advantage of external factors.

Also yesterday, the deputies listened to voters’ opinions compiled by the Viet Nam Fatherland Front Central Committee Chairman Huynh Dam.

Among the 5,400 opinions received, most voters expressed concern over the implementation of the Government’s consumer stimulus package, jobs, health care, cooking hygiene, destruction of natural resources, quality of education, traffic safety, urban order and fighting corruption.

During the fifth session, deputies will examine the Government’s reports assessing the results of its socio-economic projects in the last year and the State budget in 2008. The deputies will also discuss the financial mechanism for education and training in the 2009-14 period.

Participants will also discuss six new draft laws, and consider 12 bills. They will examine reports from the NA Standing Committee, Council of Nationalities, NA committees, the People’s Supreme Court and the People’s Supreme Procuracy.

The NA deputies will also supervise the implementation of policies on food safety and hygiene and examine the NA Standing Committee’s supervision of the resettlement of people displaced due to the construction of Son La hydro power project.

Government bonds

Minister of Planning and Investment Vo Hong Phuc presented the Government’s proposal on the adjustment to the growth rate and the State budget deficit as well as supplementary issue of Government bonds.

The Government will try to steadily reduce the deficit to 5 per cent of GDP from 2009-13.

To increase investment in projects on traffic improvement, irrigation works, health and education, the Government proposed to issue an additional VND20 trillion in Government bonds.

The NA Finance-Budget Committee (FBC) in its assessment report said that the demand for investment was high.

If the difficulties and obstacles standing in the way of investment are removed, the Government’s stimulus packages were implemented well and the world economy recovered quickly, then the GDP could rise, said the FBC.

Nonetheless, many delegates argued that the growth rate in the first quarter stood at 3.1 per cent, so the target of 5 per cent for the whole year would be too big a challenge.

Deputies also suggested the Government create a financial strategy to ensure a stable macro economy and avoid high inflation.

Agreeing with the Government’s request to sell more Government bonds, the FBC requested the Government scrutinise projects needing investment.

Most FBC members required the Government speed up disbursement of finances to stimulate economic growth and prevent downturn.

The FBC also requested the Government to give priority to communes without sufficient roads, new and remote communes and mountainous provinces.

Important traffic projects and irrigation works should also be prioritised in capital disbursement, the committee said.

The FBC support approved the Government’s proposal to exempt personal income tax from July 1 to the end of this year for people with income from capital investment and exchange.

The FBC asked the NA to approve the State budget balance in 2007: a total revenue of VND431.057 trillion ($25.4 billion), total expenditure of VND469.606 trillion ($27.6 billion), an overspending of VND64.567 trillion ($3.8 billion), equal to 5.64 per cent of GDP.

Yesterday afternoon, Minister of Culture, Sports and Tourism Hoang Tuan Anh and Chairman of the NA Committee for Culture, Education, Young People and Children presented a draft Law on Cinematography and a report on the revision of the draft.

Today, the NA discuss the draft Law on State Compensation. Deputies will discuss the results of the implementation of the socio-economic tasks and the State budget in 2008, the tasks to be implemented this year and the State budget balance in 2007.

VietNamNet/Viet Nam News