REPORT EXPLAINING AND ANSWERING NATIONAL ASSEMBLY DEPUTIES’ QUESTIONS

Presented by PM NGUYỄN TẤN DŨNG

At the 4 th meeting session of the 12 th National Assembly

Leaders of the Party, State and Việt Nam Fatherland Front,

National Assembly deputies,

Comrades and compatriots,

On behalf of the Government, I would like to thank the National Assembly for agreeing with the Government’s report on socio-economic performance in 2008 and targets and tasks of the socio-economic development plan for 2009. The National Assembly has also offered many useful suggestions to clarify the actual situation and put forth practical and specific measures.

For nearly one month now, the economic situations in the world and at home have changed rapidly and complicatedly, leading to many new factors negatively impacting on the realization of targets and norms of socio-economic development as mentioned in the Government’s report presented to the National Assembly at the opening session of this sitting. The Government made a report to the Politburo and submitted to the National Assembly for consideration and approval of the Resolution on socio-economic development plan and State budget estimate for 2009 which must be suitable to new changes. Ministers and members of the Government have also given answers (in writing or directly) to NA deputies’ questions about various issues relating to their fields of charge (including questions to the Government and the PM).

I would like to give an additional address on some situations, new requirements which should be drastically realized, and some issues drawing the attention of many National Assembly deputies.

I. RECENT ECONOMIC SITUATIONS IN THE WORLD AND AT HOME

1. Global financial crisis, solutions of countries, and impacts on Việt Nam

The global financial crisis continues to spread in the world and there is no sign of its end. The financial markets drop sharply and monetary ones are in depression, many banks and financial organizations have been driven to bankruptcy. Some economies have been fallen in recession or begged aid from the International Monetary Fund (IMF). The world’s economic growth next year is estimated to much lower than 2008, the sharpest decrease will be seen in the developed world [1] .

To cope with the situation, many countries have been taking such measures as (1) allocating a large proportion from the budget to save their banking systems from collapse; (2) preventing their currencies from dropping in value; (3) shifting their priority from anti-inflation to preventing economic recession through lowering the prime interest rate, reducing compulsory reserves, granting tax exemptions or reductions to enterprises to excite the economy, preventing deep recession due to the narrowed export markets; (4) enhancing international coordination to cope with the crisis; and (5) urging the reforms of mechanisms of manage and supervise the financial markets at national and global levels.

The global financial crisis and economic recession are causing bigger impacts on our national economy than the earlier predictions, namely:

(1) Difficult export. Economic recession, decreases in production and consumption, and increasing protectionism will reduce the demand of export of many countries, affecting Việt Nam’s export chances.

(2) Heavily-affected tourism. According to the World Tourism Organization, the number of tourists worldwide will go up only 2% in 2009 [2] , the lowest rate for the past decades. Impacts of the global tourism depression on Việt Nam are obvious: For the first ten months of 2008, the number of international tourists increased by 3.5%, much lower than the figure of 18.6% in 2007. The 2009 figure is predicted to be lower.

(3) A sharp decrease can be seen in FDI and some registered projects can be postponed because their investors may face difficulties in mobilizing capital.

(4) Indirect investment and overseas national currency exchange will be smaller; and it is more difficult to take loans and guarantee import activities.

Those factors will surely affect growth, employment and overall balance of payment of the national economy, posing heavy duties in maintaining the macro stability and ensuring social security.

2. Domestic situations

Thanks to great efforts made by the whole Party, people, and political system, many significant achievements have been seen in the implementation of eight solution packages to curb inflation, stabilize macro-economy, ensure social security, and maintain a proper and sustainable growth rate. The price fever has been brought down. The CPI increase has been slowed down, averaging around 0.9% per month in the last five months (much lower than the savings interest rate and below one-third of the average of 3% in the first five months); the figure in October was 0.19% below zero. However, compared to December 2007, the inflation rate is still high and its underlying causes have not been removed. In 2009, the Government plans to carry out the adjustment of electricity and coal prices and minimum salary in line with the set roadmap. Meanwhile, natural calamities have occurred unpredictably, affecting production activities and food price. The reasons of CPI increase remain so menacing that we cannot be reckless of.

Though unpredictable, prices in the domestic market may not soar harshly; the prices of many goods, including our major exports, are going down. Monetary policies have been loosened, and the lending interest rates reduced. The total deposit and liquidity of the banking system are better but the credit interest rate is still high. Due to the slowing growth of credit debts, production and business activities still face difficulties.

The inevitable interrelationship between the domestic inflation and the global economic recession has put negative impacts on our economy since early 2008. For example, the export turnover has gone down in recent months, the October figure was US $300 million below the average in the first nine months. Though the industrial production value grew against the same period last year (by 15.4%), its rate has continuously decelerated since June.

Such a context requires an appropriate adjustment of the overall goals, major norms and solutions.

II. REQUIREMENTS TO BE REALIZED

It requires great efforts and high determination of the whole Party, people and political system to fulfill the general goals of further reining in inflation, stabilizing macro-economy, actively preventing economic recession, maintaining a proper ands sustainable growth rate; ensuring social security; speeding up international cooperation and economic integration in an active and effective way; maintaining political stability, national security, social order and safety; paving the way for the successful realization of the five-year socio-economic development plan 2006-2010 with some major norms, such as GDP growth rate of 6.5%, 1.7 million new jobs generated, poverty rate downed to 12%, and budget overspending kept at 4.82%. On the basis of the realization of the solution packages reported to the National Assembly, it is necessary to focus on the following issues.

1. Monetary, fiscal and price policies

To continue monetary tightening in a flexible manner. The Government will set specific calculations and promptly realize this solution. To further reduce the lending interest rate in line with the new situations. Credit quotas will be defined mainly through safe criteria and supervision tools of the banking system and each and every credit organization; guarantee safe liquidity and prevent risks, make the monetary markets operate smoothly, enrich the national economy’s capital resources with appropriate interest rates; at the same time, giving an eye to fluctuations of the domestic consumption prices, changes and trends of the international market, so as to take proper actions and prevent the recurrence of inflation.

To apply flexible exchange rates to effectively cope with changes capital flows, support export, narrow trade gap, and ensure the overall balance of payment and the necessary reserves of foreign currencies in any circumstance.

To perfect management mechanisms and regulations on mergers and acquisitions; enhance the supervision over banking operations, financial services, and real estate business; firmly grasp debts of every credit organization and actively take measures in order to keep the system in safety and guarantee savings of individuals in credit organizations.

In 2009, it is more difficult to balance the State budget because many receipts will shrink, while the expenses for development investment, pay rise, social security, and natural calamity control may swell out. In order to curb inflation, prevent economic recession, and maintain a proper and sustainable growth pace, fiscal policies must be carried out in favor of monetary ones. Such financial policies on taxation, budget collection and expending, governmental debts (through issuing bonds) must facilitate production and raise investment capital for effective projects in order to maintain growth and cancel unnecessary and ineffective projects. At the same time, it is necessary to drastically promote thrift practice to keep inflation from recurring. Actually, there are great possibilities for governmental agencies, mass organizations and people to save energies, fuels, and costs for travel, meetings, and festivals. The Government will introduce specific regulations to convert these possibilities into resources for development.

To abrogate subsidies and price compensation as well as apply market-based prices for State-priced goods, including interest rates, in order to make the allocation and use of resources more fruitfully; to make sure that the accounts must be balanced in line with the actual performance, not only in each enterprises but in the economy as a whole. Accordingly, the Government will give instructions on the application of interest rates reached by credit organizations and borrowers in line with the National Assembly’s resolutions; to adjust prices of coal and electricity with a proper roadmap. The market-based prices of monopolies must be applied on the basis of harmonizing interests of the State, business community and consumers; to enforce compulsory auditing and make public cost prices.

To boost market management, price control, anti-speculation, illegal price rise, and the fight against counterfeit goods, trade frauds and cross-border smuggling.

2. Encouraging investment, promoting production and export, reducing excess of import over export

- Investment: In the face of economic recession, the State should take measures to stimulate investment, especially in essential and effective socio-economic infrastructure works, tighten its management, and eradicate weaknesses and shortcomings in public investments.

In the orientations of investment for 2009, the Government will continue to postpone unnecessary and ineffective projects and works; channel capital sources (budget, governmental bonds and funds from SOEs) to power works, important production projects, transport infrastructure (seaports, roads) in the country’s big economic hubs in order untie knots of growth; to pay adequate attention to agricultural and rural development in conformity with the Resolution approved at the 7 th Plenum of the 10 th Party Central Committee; to increase investments in education and training, science and technology, and some urgent social aspects. To strictly monitor investments made by SOEs; to engage other economic sectors in developing electricity, infrastructure construction, high technologies, auxiliary industries, processing industry, production and services in rural areas.

To further perfect the legal system, mechanisms of investment management, and stipulations on site clearance and compensation; to vigorously reform procedures on capital construction, bidding process, and capital allocation in order to speed up the implementation of projects, quicken the schedule of construction, put the works into operation. As a result, the efficiency and the capital turnover of the economy will be improved.

To place clear responsibilities on bodies in charge of planning work, administers of investors, and investors in terms of investment effectiveness; to enhance supervision over investments in all phases, from designing projects to constructing and operating them. Furthermore, it is necessary to complete development planning schemes on the basis of long-term competitive advantages and inter-regional visions with a view to ensuring economic scope, and in accordance with market capacity in the context of international and regional integration.

- Expanding production and market

Externally, the financial crisis has undermined production and consumption in most of our major export markets. Internally, inflation has directly weakened domestic purchase power. In such a circumstance, it is very vital for enterprises to raise quality and competitiveness of their products in order to conquer and expand markets. In this case, businesses play the leading but not decisive role. The State should join hands with them. Apart from applying flexible monetary policies to ensure abundant capital with proper interest rates, the Government will promptly fix specific criteria to cut tax and postpone and delay the deadline of corporate tax payment. To abrogate troublesome procedures in order to minimize time and costs spent by enterprises. To quickly streamline models and mechanisms of operation of credit trust funds for small and medium enterprises (SMEs); to encourage and support their production and business activities to create more jobs. Enterprises must outline their own plans on saving energies and fuels, upgrading production and management technologies in order to improve their productivity, reduce costs in all phases of production and distribution, ensure quality, lower cost prices, and establish channels of distribution, facilitating domestic market expansion.

To improve the performance of SOEs, first and foremost economic groups and corporations. To heighten responsibilities of State owners for their investment and business activities, focusing on major fields.

Financial and business performance of SOEs is drawing attention of many National Assembly deputies. There are different opinions on the role of SOEs in general and economic and corporation in particular. Before this sitting session, the Government made a report on this issue to the NA Standing Committee. The Minister of Finance also gave answers to questions about this issue. Now I would like to make it clearer:

It is necessary to have a common awareness of the position of SOEs in the socialist-orientated market economy which we are trying to build, as defined in the Resolution of the 3 rd Plenum of the 9 th Party Central Committee: "State-run economic sector plays a decisive role in firmly upholding the socialist orientations, stabilizing and developing the economy, politics and society of the country. SOEs should be regularly renewed, developed and upgraded in order to hold a key position in the national economy, functioning as an important instrument for the State to set macro orientations and regulations, a core force to help the State-run economic sector to play the leading role in the socialist-orientated market economy, the impulse for the international economic integration. The performance of SOEs must be considered and assessed thoroughly in economic, political and social angles...” This consistent guideline has been highlighted in various documents and resolutions of the Party since the 6 th Congress; it must be properly and fully understood in order to bring about unanimous assessment and actions taken by the whole political system, Party and people.

The role of SOEs in our country should be defined on the following basis:

+ In such an economy in the early stage of its transition, the private sector is still fragile, property, capital and technological capacity is not enormous enough to facilitate large-scale investment projects, especially vital transport, energy, and industrial works which are the foundation of the national industrialization and modernization. Thus, SOEs are the driving force which should be exploited and brought into full play.

+ To build up an independent and self-reliant economy, the Party sets the guideline to make full use of both internal and external strengths. Among internal strengths, which are a decisive factor, enterprises from all economic sectors, including SOEs, are the core component.

+ The realities at home and in the world show that, in parallel with forming different elements of the market economy, it is necessary to promote the State’s regulatory role and intervention to correct defects of the market. The State intervention is not made chiefly through administrative orders but instrumental policies and economic forces, particularly SOEs.

Firmly grasping the Party’s guidelines and viewpoints, the State has built a relatively integrated legal framework in order to develop a multi-sectoral economy, renovate the mechanisms of SOEs management, shift from the centralized planning model to a market-based business environment, abrogate subsidies and monopoly of SOEs in almost all economic fields, vigorously rearrange, renovate and improve SOEs, considering this “an urgent, strategic and long-term duty with many difficulties and challenges” as pointed out in the Resolution of the 3 rd Plenum of the 9 th Party Central Committee.

Over the past years, the system of SOEs has been rearranged and streamlined from 12,000 down to 1,700 enterprises. Some State economic groups and corporations have been founded (as experiment), operating in various fields, including finance, in accordance with the Party’s resolutions and the State’s regulations. SOEs, especially corporations and groups, have restructured to better adapt themselves to the market economy and international economic integration, with higher efficiency and competitiveness, significantly contributing to the country’s socio-economic development (about 40% of GDP). SOEs are playing a major role in developing infrastructure, making production materials, and trading in essential services. SOEs have also invested in numerous works in remote areas and done business in the low-profit fields to ensure social security. Recently, facing difficulties, many groups and corporations have proved their real role as important tools for the State to curb inflation, stabilize macro-economy, and maintain growth and social security. Due to the above-mentioned tasks, growth rate and business performance of SOEs have been lower than other economic sectors.

On the other hand, SOEs show many weaknesses and shortcomings. Though owning a large property and capital value, their profit/capital ratio is low and job generation inconsiderable. SOEs, first and foremost groups and corporations, have not really taken the leading role in organizing the domestic markets, renewing technologies, developing auxiliary industries. Their linkage and cooperation with the people-run sector are weak, so they have failed to lead people-run enterprises. Maladministration, waste and corruption have been seen in some enterprises.

Those defects stem from SOEs themselves and also from management mechanisms and economic structure. So, we should determine to renovate and improve the performance of SOEs, so that they can more effectively play their role in the socialist-orientated market economy. This is an inevitable assignment which must be better and better carried out.

To remove shortcomings of SOEs, raise their position and performance, we should focus on the following tasks:

First, to continue perfecting institutions and laws, create an equal business environment for enterprises from all economic sectors. SOEs should prove self-reliant in their own business activities and self-responsible for their financial scores. They should compete in a healthy way in order to guarantee their sustainable development. In the exclusive fields, it needs to establish a mechanism of strict control as a top premise for the realization of other requirements.

Second, to further renovate and perfect the State ownership over SOEs; to define clear responsibilities of ministries/provincial-level People’s Committees which are representing the State ownership, of the Boards of Directors which function as direct owners, and of executives.

Third, to continue the equitization of SOEs under the set plans; to sell stocks to strategic partners with great potentials in terms of capital, technology, management experience and marketing capacity. The experimental phase should be reviewed early to work out a perfect model of economic groups.

Fourth, to consolidate and strengthen the role of Party organizations in SOEs. To fruitfully realize democratic statues in these enterprises.

Fifth, to enhance the supervision over SOEs’ activities and made public their performance, especially among groups and corporations. To audit SOEs and publicize the results. The Government agrees and applauds the National Assembly’s adoption of SOEs as the main subject in its supervision program 2009.

- Promoting export and reducing trade gap

Currently, promoting export and reducing trade gap are very essential to prevent economic recession, maintain an appropriate growth rate and macro-stability.

First of all, it is necessary to increase productivity, improve quality and cut cost prices in order to boost the export of competitive and marketable products; to develop new exports and new markets; to outline specific plans on promoting export to such free trade areas like ASEAN, ASEAN-China, ASEAN-Republic of Korea, and other markets which are little affected by the global financial crisis. To make use of advantages brought about by the Việt Nam-Japan Association for Comprehensive Economic Partnership to raise export volume. To speed up trade promotion. Vietnamese representative agencies in other countries should better support enterprises to find out markets and partners, considering this a top assignment. Export turnover should be considered one of criteria to allocate funds for these agencies. To continue taking proper measures to control import. To encourage the consumption of domestically-made products and sharply reduce excess of import over export.

In 2009, the world’s demand for agro-products, especially food, is still high. Though the financial crisis has partly impacted on people’s purchase power, primary goods like food and low-priced marine products, continue to be our advantages; they can become substitutes for high-class categories of food. So, we should more fruitfully organize the collection and export of these products to the current markets and new ones.

About rice consumption and export, an issue drawing great attention of many deputies, the Ministers of Industry and Trade and the Minister of Agriculture and Rural Development already presented their written explanatory reports and directly join previous interpellation sessions. Now, I would like to give additional information as follows:

+ Rice export is a competitive advantage of our country. Natural conditions are very favorable for rice cultivation; our farmers’ farming technique has been improved significantly. The average rice yield stands rather high, at five tons per hectares per crop. For the past two decades, we have produced enough rice to meet not only the domestic demand but also export. Since 1989, we have exported 65 million tons of rice, earning about US $17 billion. Over 50% of rice productivity and over 90% of exported rice come from the Mekong Delta.

+ Always paying great attention to developing rice production and consumption, our Party and State have designed many mechanisms, policies and solutions to help farmers boost up intensive production, raise productivity, quality and income, so as to improve their livelihood in the market economy.

+ In directing rice export, the Government has required that it is necessary to gather all trade rice for farmers at an acceptable price; guarantee national food security in any circumstance; and soundly stabilize rice price in the domestic market. Since early this year, the Government fixed the whole-year quota of rice export of 4-4.5 million tons, which could be readjusted in the third quarter. The Government also demanded the appropriateness between the delivery schedule and the food supplies in each crop, so as to ensure the domestic supply-demand balance and prevent speculation and price escalation, partly contributing to inflation curbing.

+ Relying on the tenth-month crop yield of 2007 and the estimated yield of the winter-spring crop in the Mekong Delta, after calculating rice for domestic consumption, the volume of rice for export in the first half was about 2.3-2.5 million tons; the contracted export volume for this period was over 2.4 million tons. In late March, food price in the world market sharply soared and it was predicted that there could be a global shortage of food, so the food price also rocketed up at home. At the same time, many enterprises promoted the purchase for their export reserves, pushing the rice price higher at home. In such a context, after considering the reports made by the Ministry of Agriculture and Rural Development, Ministry of Industry and Trade, Food Association and some other relevant agencies on rice production and export, the Prime Minister on March 25, 2008 ordered to temporarily pause the signing of new contracts on rice export. The reasons for this include:

First, the volume of rice for export in the first half was fixed around 2.3-2.5 million tons, only enough to serve the inked contracts (totaling 2.4 million tons). And at that time (late March), we had just delivered 800,000 tons; at least 1.6 million tons should be delivered in April, May and June. Thus, it was necessary to temporarily stop signing new contracts in order to mobilize abundant trade rice for export because we had run out of reserves.

Second, at that time, the northern provinces were suffering a 38-day historical spell of harsh coldness damaging 200,000 ha of the transplanted winter-spring crop and over 17,000 ha of the sowed rice seeds. The re-transplantation was completed by March 15, 2008, 15-20 days later than the normal crop; and the possibility of crop failure was forecast fifty-fifty. Meanwhile, in the Mekong Delta, rice seeds for the summer-autumn crop were not yet sowed. Natural disasters and epidemics continued to be unpredictable. So, it was quite difficult to calculate the yield. The temporary stop of signing new contracts was aimed at guaranteeing the country’s food security in case of crop failure.

Third, when the rice price in the world market soared since late March, some proposed the signing of new export contracts to get greater earnings. In case we allowed the signing of new contracts which would be realized right in April, May and June, we could sell out an insignificant volume of rice at a higher price. However, our exporters had to scrape the barrel of rice for domestic consumption. This would put up the prices of not only rice but also other goods at home, consequently leading to higher inflation rate and causing negative impacts on the society and rice growers. In case of crop failure, our country would surely face a terrible shortage of food. In short, the temporary stop of rice export in April, May and June was very essential in order to guarantee domestic consumption and keep the appropriate rice price, as a way to realize the top priorities of curbing inflation [3] and ensure the country’s food security in any cases.

+ To seize the opportunity of high price of exported rice, the Government urged exporters to negotiate with their partners about price raising in the signed contracts.

+ By early June, some good signs were seen for the winter-spring crop in the North and the summer-autumn one in the South, the Government allowed the signing of new export contracts. Up to November 10, our exporters contracted for the selling of over 4.5 million tons. Currently, they are continuing the negotiations for new contracts (over 1.5 million tons) and will start the deliver in December.

+ The selling of rice in the remaining months is not easy due to various reasons. First, the rice price in the world market is going down. We have had bumper harvests, with the rice yield increaseing by 2.6 million tons against last year [4] . However, the quality of our summer-autumn and autumn-winter rice, especially varieties IR50404 and OM576, is low, so the rice is not easy to be sold out and its price is much lower than the winter-spring crop. In Mekong Delta, these varieties were grown on 30-35% of the total area. Due to high lending interest rate, it is quite difficult for enterprises to buy in rice.

To gather all trade rice for farmers, the Government directed and supported enterprises to boost up their purchase. After buying 900,000 tons of rice, domestic exporters are purchasing 300,000 tons of rice more as directed by the Government in order to buy up trade rice and afford the signed contracts.

+ In such a hard time as mentioned above, though our prediction were not so accurate, the Government’s directions to rice export were for the sake of the the country and generally met the requirements. In the first six months, over 2.4 million tons were exported, up 50,000 tons comapred to the same period last year. To the end of October, the export voume of rice was over 4 million tons. The total volume of the year is estimated to be 4.7 million tons, about 200,000 tons higher than last year; and the turnover is US $2.8 billion. The price was US $600/ton, twice that of 2007 (and equivalent to the price of Thai rice); the country’s food security was guaranteed; and food price at the domestic market were stabilized.

+ According to a survey conducted by the Ministry of Finance, in the Mekong Delta, though input costs for the winter-spring crop sharply increased, the selling price of rice was higher, so the profit rate, after deducting expenses, was over 85% [5] , a considerable increase compared to the last winter-spring crop (70%). The summer-spring crop had a lower profit rate, about 20% [6] (for the variety IR50404, the profit rate was 5%) [7] . The average profit rate for both crops stood at 60%. However, in the context of high inflation, and with current income benchmark, rice growers faced a lot of difficulties in their life.

The Government is directing the implementation of necessary solutions to assist rice growers and asking relevant ministries to strictly review their operations in order to ensure better performance in the future. The Government is also directing the drafting of a national plan on food security, with specific measures to remove weaknesses, facilitate production and business activities in a fundamental, long-term and effective way, and guarantee food security and legitimate interests of rice growers. This work must be considered a goal and a decisive solution.

3. Ensuring social security and porverty reduction

The economic growth rate in 2009 will be lower than in 2008, making the job generation and social security more difficult. The Government pledge to focus on the following important tasks:

+ To allocate from each and every ministerial/local budget estimates enough funds for the policies on social security; to quickly deliver aid to beneficiaries in needs; to enhance supervision and inspection work in order to prevent losses; to strictly punish all irresponsible organizations and individuals who break regulations or engage in corruption; to publicize social security policies which should be implemented and supervised by everyone.

To drastically direct the establishment of unempolyment insurance funds; to map out and realize the plan to support the poorest districts; to give allowances to low-income people until the minimum salary benchmark can be readjusted properly; to raise the capacity of policy banks in fruitfully realizing social security credit programs and providing capital to the poor and students. To mobilize supports from the State and communities in the social security fields and poverty reduction. Through consistent solutions, no poor household will be left hungry due to the shortage of food.

National Assembly deputies,

Apart from bettering social security, environment and food safety are now big issues, having great impacts on each and every person’s life and health. The Minister of Natural Resources and Environment and the Minister of Health already joined the interpellation on these issues. Now I would like to give some additional information.

Over the past time, we have made great efforts to protect the environment and ensure food safety and hygiene. Institutional system, organizational and personnel work have been perfected, supervision, inspection, and punishment against violations enhanced, people’s awareness of food safety, environment protection and self-protection improved. However, there remain many weaknesses and shortcomings in this field. The Government has recognized the importance of this work and determined on drastically addressing serious pollution, strictly fining violators, and not licensing projects and works which can pollute the environment. At the same time, the following duties must be prioritized:

(1) To review, adjust and supplement development schemes and plans. To closely combine socio-economic development and environment protection; to consider environment protection and sustainable development a precondition to set up growth targets; to highlight this requirment in designing, approving and realizing investment strategies, plans and projects. No project or investor which can pollute the environment will be licensed.

(2) To further review legal documents on environment protection and food safety, perfect the set of standards, clearly define competence and responsibilities of different management agencies by sector and region; to boost up the coordination among these agencies; to supplement powerful sanctions in order to raise the effectivenss of laws.

(3) To highlight the State management of competent sectors and local authorities at all echelons in enforcing laws on environment protection and food safety.

(4) To promote check and inspection work, and strictly penalize all violations, including suspending violators’ operations, withdrawing their business license, or even taking them to the court. To strengthen the staff and technical facilities to make this work more effective.

(5) To enhance propagation and information work in order to raise the community’s and everyone’s responsibility and awareness of preventing and fighting against law-breaking acts in the fields of environment protection and food safety.

National Assembly deputies,

Economic situations in the world and at home have posed many difficulties for us in conitnuing to curb inflation, prevent economic recession, maintain proper and sustainable growth, stabilize macro-economy, and ensure social security. Unpredictable changes of the world economy require better forecast and analysis as well as prompt and flexible responses. We should place importance on information and propagation work. All management policies and the country’s economic situations must be made public. Despite big challenges and difficulties, we still have many advantages: inflation has been controlled; the economic growth rate in 2008 is rather high (about 6.7%); political and social stability has been maintained; our people are dynamic, industrious, and confident of the Party and State’s guidelines, trying best to put those into reality. By making use those advantages, applying lessons presented by the Government in the opening sesssion, and taking into consideration all practical recommendations from National Assembly deputies, the Government pledge to early outline a specific program of action in order to realize the National Assembly’s resolutions with best resutls. The Government would like to suggest the National Assembly tighten its supervision and each and every deputy make greater efforts, together with the whole Party and people, to convert challenges into opportunities for development, fulfilling all targets and duties set in the socio-economic plan 2009.

Thank you!