He asked ministries, sectors and localities to effectively implement solutions adopted by the Party, the National Assembly and the Government, especially solutions for boosting production and exports.

He said priority should be given to agricultural production as this “creates a prerequisite for maintaining stability and stimulating market consumption.” According to the PM, the agricultural sector must introduce measures to prevent the spread of contagious diseases such as bird flu, foot-and-mouth and pig blue ear while ensuring that rice growers earn a profit of at least 30 percent. He suggested that banks disburse preferential loans from the investment stimulus package to farmers to purchase production tools, machinery and building materials.

For industrial production, construction and transport sectors, he asked ministries, sectors and localities to immediately abolish cumbersome administrative procedures, speed up land clearance and re-consider calculating the electricity price during peak hours. He also requested them to speed up the disbursement of and attract foreign direct investment and ODA capital.

He directed the Ministry of Industry and Trade to intensify the fight against smuggling and increase trade promotion activities targeting rural areas.

He instructed the central bank to re-consider adjusting interest rates so as to keep the inflation rate at around 6 percent. He agreed with the bank’s proposal to guarantee credits for small- and medium-sized enterprises and increase the number of beneficiaries from the 4-percent interest rate subsidy programme. However, he asked commercial banks to keep a close watch on the use of the subsidised loans and strictly deal with any businesses if found to misuse the money.

The PM also suggested that capital from government bonds be disbursed promptly to invest in transport, irrigation and healthcare projects as well as in building houses for teachers and students.

He reminded the healthcare sector to implement measures to control epidemics and improve medical services for the poor.

It was reported at the meeting that in the first quarter of this year, the national economy grew by 3.1 percent, industrial production rose by only 2.1 percent (compared to 16.3 percent recorded in March 2008), exports fell by 15 percent to US$4.7 billion, imports tumbled by 45 percent to US$4.3 billion, and tourism shrank by 16.1 percent.

He agreed with Cabinet members’ proposal to adjust the GDP growth rate down to 5 percent and the budget deficit of less than 8 percent this year.