Ha Noi (VNA) - The Government should take drastic measures to bring about an economic growth rate of 9 percent in the remaining months of the year, so that the target of 8.5 percent growth this year can be achieved, said Prime Minister Phan Van Khai at the Government's March meeting in Ha Noi on Mar. 29 and 30.

He instructed ministries and localities to implement measures to boost production and business, especially industrial production, and make use of material resources in the country to raise the value of Vietnamese export items.

The PM called for the proper exploitation of crude oil, development of the market for industrial products, including steel, electricity, cement, garment and textiles, while accelerating the process of equitising and restructuring State-owned enterprises.

The PM told the Ministry of Agriculture and Rural Development to continue assisting provinces and cities to effectively combat droughts and minimise the damage caused by droughts, and the Ministry of Science and Technology and other relevant ministries to conduct research into water resources and their use.

Ministries and localities were requested to review their  master plan of allocating the State budget to projects with a view to increasing the  efficiency of investment capital.

PM Khai also asked for stronger measures to boost exports, focusing on enhancing trade promotion activities, expanding traditional markets, and seeking new outlets. He called for an increase of garment and textile exports to the European Union and the United States, stressing technological modernisation, product quality improvement and the diversification of export items.

Other measures were to mobilise all available investment sources, control inflation, minimise traffic accidents, fight social problems, crack down on illegal loggers, and prevent and fight forest fires.

Reviewing the socio-economic situation in March and the first three months, the cabinet members agreed that economic growth was affected by a serious drought in the central highlands and central region, threats of forest fires on a large scale, the outbreak of avian flu, and increases in materials prices.

The national gross domestic product is estimated to have risen 7.2 percent in the first quarter of this year compared with 7 percent last year. The agro-forestry and fisheries sector has expanded by 4.1 percent; industry and contruction, 8.5 percent; and services, 7 percent. The non-State sector's industrial production has grown 25.5 percent. Products recording high increases include coal, processed seafood, cartons, medicine, and motorbikes.

The country's three-month export turnover is forecast to reach almost 6.72 billion USD, up 16.2 percent year-on-year. Turnover from retail sales and services have seen a year-on-year increase of 18.5 percent.

However, the growth rates of many economic sectors including industrial production are much lower than the projected 8.5 percent. The State enterprises' low growth rate has affected the whole sector. Although export revenues have risen, the monthly figure has only reached 2.2 billion USD, remaining far below the targeted 2.5 billion USD. National economic growth has also been affected by the high and unstable prices of oil, cement, steel, and materials. Crime, especially drug crimes, have seen complicated developments with the fast increase in the number of new drug addicts. Additionally, a number of ministries, branches and localities have not yet strictly carried out regulations on investment and construction management.

The cabinet members discussed and gave opinions on reports on the State budget balance and auditing of the State budget in 2003, land use planning, a Government action programme on education, a draft law on practising thrift.

PM Khai took this opportunity to admit the Government's responsibility for the recent railway accident in central Thua Thien-Hue province. He praised and thanked people living at the site for their assistance to the victims and relevant agencies in helping them overcome the consequences of the accident.

He asked the Minister of Transport and Communications to clarify the cause of the accident and the responsibility of each relevant organisation and individual.-Enditem