Socio-economic development focuses on three breakthroughs

On the last working day of its second session on October 1, the National Assembly Standing Committee discussed a Government report on the implementation of socio-economic plans and State budget estimates for 2011 as well as socio-economic development orientations, tasks and plans; State budget estimates and allocations for 2012; socio-economic development in the 2011-2015 period; national targets for the 2011-2015 period; and the use of government bonds in the 2011-2015 period.

According to the report, for the remainder of 2011 the Government will prioritize containing inflation, stabilizing the macro-economy and ensuring social welfare.

For 2011 and first years of the five-year there will be less focus on GDP growth in order to prevent high inflation.

FDI in the first nine months of this year is estimated to reach US$8.2 billion, up 0.2 percent compared to the same period in 2010. 675 new projects were granted investment licenses with total registered capital of more than US$8.23 billion. US$2.15 billion worth of ODA capital was disbursed, equal to 89.6 percent of this year’s planned amount.

Based on the results so far, it is estimated that GDP will grow by 5.8-6 percent this year while the target set by the National Assembly is 7-7.5 percent. The export value will increase by 31.6 percent with an import surplus of 10.5 percent; total social investment capital will go up 34.5 percent; and the consumer price index (CPI) will rise 18 percent. The respective targets set by the NA are 10 percent, a maximum of 18 percent, 34.5 percent and 7 percent.

Six out of 22 targets set for 2011 will not be reached, including economic growth, CPI, total social investment capital, the number of villages meeting the criteria for new rural areas, the reduction of the number of poor households and the number of rural people with access to safe water supplies.

The Government also devised targets and criteria for the 2011-2015 socio-economic development plan based on the current situation at home and in the world. Accordingly, it will focus on containing inflation, stabilizing the economy, maintaining growth while restructuring the economy and improving quality, and establishing an effective and competitive growth model towards sustainable development by 2013.

It will focus on the three strategic breakthroughs and 12 major orientations in its socio-economic development strategy.

The Government proposed two scenarios for economic growth in the next five years; in one the GDP will grow by 6.5 percent and by 7 percent in the other.