Addressing the closing ceremony of the 5^th session of the 12^th legislature in Hanoi on June 19, Mr Trong analysed the impact of the global financial meltdown and the economic recession on Vietnam, and highlighted the measures the country has taken to help it weather the storm.

He said that Vietnam has cushioned itself from the major impact of the crisis and made important progress thanks to the Party’s clear-sighted leadership, timely interventions by the government and extraordinary efforts from every sector, the business community and the public.

As a result, the country has stabilised its macro economy, achieved a steady growth in industrial production and key exports, controlled inflation and ensured social welfare. It has maintained political stability, social order and safety, national defence and security while expanding foreign relations successfully.

He pointed out the main tasks for Vietnam in the remaining 6 months of this year in the context of the global economic crisis, and said that it requires a greater effort from the government, ministries, sectors, localities and people to carry them out. 

The NA Chairman praised the feedback from question time, in which he said it had made clear contentious issues of voter concern and showed that Cabinet members have a high sense of responsibility towards the nation. He asked all Cabinet members to fulfil their promise and report to the National Assembly at the following sessions. He also asked NA agencies, deputies delegations and deputies themselves to increase the supervision of the ministers’ work.

Earlier the same day, the NA approved a resolution to adjust several targets for the country’s economic growth, State spending, the issuance of additional government bonds and personal income tax exemptions and reductions. Accordingly, Vietnam’s economic growth rate will be lowered to 5 percent and export growth rate to 3 percent while the consumer price index will be kept at a rate below 10 percent and budget overspending will be raised to less than 7 percent of the country’s GDP.

The NA agreed with the government’s proposal to issue an additional VND20,000 billion worth of bonds for key transport, irrigation, healthcare and education projects. Part of the sum will also be used to build hostels for students, especially in poor provinces.

It agreed to exempt personal income tax from January 2009 to June 2009 and continue to cut the tax on those who earn their incomes from capital investment, capital transfer and the franchise of trading rights.

The legislative body also approved a resolution governing the implementation of policies on food hygiene and safety. It asked the government to complete and submit a bill on food safety to the NA for consideration. It also asked the government to map out a national strategy for food hygiene and safety for the 2011-2020 period, and agreed to increase the budget for the national target programme on food hygiene and safety from 2010.

During the month-long session, starting on May 20, the legislative body approved 11 bills to enhance the capacity of State management and meet the country’s requirements for socio-economic development during international economic integration.