AP: Please advise Vietnam's achievements and shortcomings in 2004? How is the prospect for Vietnam in the year 2005? Which world event has exerted the greatest effect on Vietnam in 2004?

Answer:

Entering 2004, the world economy resumed positive growth while facing with numerous difficulties due to unstable political and security environment in many countries and regions, dramatic fluctuation in prices of energy and high oil prices. Moreover, widespreading terrorism, armed conflicts, epidemics and environment calamities also posed many challenges to the stability of the world economy and to all countries including Vietnam.

In Vietnam, all fields of social life have been directly affected by consecutively arising difficulties and challenges such as widespread avian influenza epidemic, serious natural disasters and high prices of some major imported commodities due to fluctuation in oil price. Despite these difficulties and challenges, Vietnam has recorded many significant achievements.

First, Vietnam has maintained high growth rate in various fields and, in the meantime, effectively addressed social problems. In comparison with 2003, GDP growth rate has increased 7.6%, industrial production output 15.6%, export turnover 24%, investment capital of the entire society accounted for nearly 36% of GDP, FDI 35%, foreign tourist volume increased 13% and poverty rate reduced to about 9% as compared to 12% in 2003.

Secondly, Vietnam enjoys a stable political environment with assured security and social safety, which has facilitated investment attraction and development.

Thirdly, the investment environment continues to be improved. The Government has adopted numerous macro policies on taxation, customs, land management and administrative procedures aimed at encouraging and facilitating foreign and domestic investment. The National Assembly has ratified various legal documents in order to improve the investment environment.

Fourthly, Vietnam has recorded significant achievements in multilateralzing and diversifying external economic relations, expanding markets, attracting aid, investment and technology, proactively integrating into regional and international economy, improving economic competitiveness, developing human resources, creating a conducive environment for development, improving management capacity and macro management, and enhancing adaptability to changes in the world economy.

Fifthly, Vietnam has vigorously and comprehensively engaged in external affairs and recorded fine achievements. Most notably, Vietnam’s successful hosting of ASEM 5 in Hanoi in October 2004 has ushered in a new development era for promoting cooperation between the two continents. These achievements have contributed to consolidating and enhancing Vietnam's position in the world arena.

For Vietnam, major tasks still lie ahead in 2005, namely, to continue high and sustainable growth rate; enhance the economy's efficiency and competitiveness; successfully deal with social matters of poverty reduction, health and education system upgrading, etc; and intensify administrative reform and the fight against corruption. In 2005, Vietnam will further its integration since Vietnam has been on the threshold of fully realizing its AFTA commitments in 2006 and stepping up negotiation on accessing WTO. Having concluded negotiations with many partners, Vietnam is hopeful that negotiation with other partners including major trading one like US, China and Australia will be successful, paving the way for Vietnam's entry into WTO soon.