Workers at a construction site in Ho Chi Minh City.

Prime Minister Nguyen Tan Dung has called for concerted efforts to combat the economic slowdown and fulfill the GDP growth target of 5 percent for this year.

Cabinet members agreed that despite facing various challenges in the first half of 2009, the economy has suffered a slowdown, but had not fallen into a crisis and was already showing signs of recovery.

The government’s policy of exempting, reducing and reimbursing taxes has helped mitigate difficulties for businesses and consumers, step up production, commerce and exports, and stimulate investment and consumption, they noted.

They also acknowledged limitations in socio-economic development during the first six months of this year, citing the GDP growth rate of 3.9 percent – the lowest level in recent years – capital shortage for production and business and less foreign direct investment.

Natural disasters, epidemics and unemployment due to the adverse impact of the world economic recession have also affected the incomes and the lives of the people, they said.

To reach this year’s targets, the government will focus on the implementation of stimulus packages and boosting production, business and exports, the meeting heard.

Relevant ministries and agencies need to accelerate the disbursement of available capital, encourage economic sectors to invest in key development projects and adopt flexible monetary and financial policies, participants agreed.

Leaders of the People’s Committees of all 63 provinces and cities took part in discussions on socio-economic development via video conference.

Source: TN, VNA