(VOVworld)- On the occasion of the New Year 2013, Prime Minister Nguyen Tan Dung delivers a New Year message entitled “Determined to overcome weaknesses and difficulties to control inflation, ensure growth and sustainable development”. VOV now brings you excerpts from the message.

In 2012, Vietnam achieved positive achievements:  the macro-economy was improved, inflation was kept at a low rate of 6.81% (compared to 18.13% in 2011); export turnover increased by over 18%; foreign exchange reserve hit a record high, the exchange rate was stabilized and the trust in Vietnamese currency improved. In the context of global economic downturn, Vietnam's GDP grew over 5%. Cultural and social affairs made progress; social welfare and security were guaranteed. National defense, security and diplomatic work gained many achievements. Political and social stability was maintained. Generally, development policies proved to be on track.

Despite those achievements, Vietnam is to face with numerous difficulties and challenges as the world economic recovery remains at a slow pace and major export and investment markets have yet escaped from economic recession. Policy adjustments undertaken by big economies in the world have not brought about desired results with risks and instability remaining high. Potential external shocks are still lingering somewhere, likely leaving negative impacts on the national economy. Internal weaknesses found in economic structure and growth model are dealt with slowly. The process of restructuring is just at an initial stage and likely to encounter many difficulties. The macro-economy is yet stable and inflation hike is likely to rebound. The national economy has not regained its growth momentum. Production, business and job generation are facing extreme impediments; enterprises are experiencing declining resources and people are dealing with shrinking incomes. Market confidence is low. Meanwhile, Vietnam is regularly challenged by attempts to spark socio-political instability and violate the national sovereignty and territorial integrity.

In such a context, to fulfill the overall targets set for 2013, it is necessary for the entire Party, army, people and the whole political system to make greater efforts in realizing uniform solutions that have been set forth, focusing on the following tasks:

1. Improving the quality of institutions and policy response capacity in order to build up market confidence.

To have proficient institutions and policies, it’s important to strictly observe the Party’s viewpoints of building a socialist-orientated market economy taking into account development needs and people’s interests. It’s important to make quick and proper policy response. To have a good policy response, it is important to observe economic laws, improve forecasting capacity, and fully calculate market reactions and possible consequences. The promulgation or adjustment of a policy must not cause big changes and negative impacts on people’s life and enterprises’ operations.

2. Regulating monetary policy in accordance with market realities and inflation targeting and closely combining monetary and fiscal policies

Based on the principle of maintaining a tight monetary policy, interest rates must be regulated flexibly at levels relevant to inflation targeting. Drastic direction is required to handle non-performing loans to unfreeze capital flow for the national economy. It is necessary to quickly implement planned investment projects in a bid to increase total demand to stimulate the economy, thus making pervasive effects on businesses’ operations. During the implementation process, it is required to closely integrate fiscal and monetary policies to accommodate total demand, reduce inflation and obtain a growth that is higher than that of 2012.

3. Removing difficulties against production and business and supporting the market.

It is required to attach significant importance to demand-created measures while unfreezing supply sources, to steer the priorities of monetary and fiscal policies to subjects and sectors having high rates of demand growth. They include agriculture, farmers, rural areas, export market expansion, infrastructure development, social housing and dormitories for students, etc. This is also a solution to help improve the living conditions of people and low-income groups.This is a measure to improve the life of the people, especially disadvantaged groups. The credit source offers longer term and lower interest rate for house buyers to reduce real estate inventories.

5. Boosting economic restructuring. Among the three contents of economic restructuring from now until 2015, restructuring State-owned enterprises (SOEs) plays a special role. This is the main axis for restructuring the whole economy not only because SOEs are consuming big resources with low efficiency but they are also key stakeholders in investment. State groups and corporations must focus resources on their core business lines in order to fruitfully realize the country’s industrial policies, push up the modernization and industrialization process, and support the development of the private sector.

6. Ensuring social security and social welfare. In 2013, it is required to boost poverty reduction, especially for ethnic people. Assistance will be provided to people who live just above the poverty line and those who have got rid of poverty to help them achieve sustainable poverty reduction. It’s important to pay attention to socio-economic development in resettlement regions to ensure a better life for the residents, considering it important criteria to evaluate the overall efficiency of any investment project relating to land reclaimation and resettlement.

Prime Minister Nguyen Tan Dung stressed that promoting the achievements, resolutely overcoming existing shortcomings, holding high the sense of responsibility, self-reliance, and the tradition of solidarity, Vietnamese people will surely surmount difficulties and challenges to successfully realize socio-economic development targets set for 2013.