On May 29, PM Nguyen Tan Dung chaired a monthly cabinet meeting in Hanoi to review socio-economic situation in May and over the past five months.

High on the agenda were the East Sea situation and its impacts, policies and solutions for fishery development through 2020, and a government action plan for comprehensive educational reform.

Cabinet members agreed upon the government assessment of socio-economic situation in May and the first 5 months of this year saying that it continued to make positive changes in the right direction.

Especially the consumer price index (CPI) in May rose 0.2 %, the ten year lowest rate; exports in the reviewed period saw high growth, reaching over US$58 billion up 15% year- on-year; total budget revenue, credit of the national economy were on the rise; industrial production, processing and manufacturing posted higher growth rate than the same period.

PM Nguyen Tan Dung chairs the monthly cabinet meeting in Hanoi. (Photo:VGP)

However, aggregate demand of the national economy remained weak and business and production activities of enterprises still faced difficulties. The number of businesses that ceased operations and dissolved was still at high level. Spontaneous protests against China’s serious violation of Vietnam's sovereignty took place in some localities including foreign-invested enterprises, destabilizing social order, damaging production and export business and adversely affecting the investment climate.

The PM, ministries, relevant agencies, and provincial authorities gave timely directions to prevent the spread of the acts and directly supported businesses, and seriously handle law breakers.

To date, most of the damaged businesses have now returned to normal operations. Major power and iron projects invested or contracted by China are still running normally.

Addressing the meeting, PM Dung clearly showed Vietnam’s stance on consistent struggle to protect national sovereignty by peaceful means through many different forms to demand China immediately withdraw its oil rig from Vietnam’s exclusive economic zone and continental shelf.

He also underlined the need to maintain normal political and economic ties with China because it is inevitable and objective for mutual benefit.

"In the context of globalization and deeper integration, this whole world is an economy and a market. China is also a member of the World Trade Organization (WTO) and we are also a WTO member. China and Vietnam have ASEAN-China Trade Agreement. Moreover, China is the second largest economy in the world and we are their neighbor. In this context, economic and trade cooperation between Vietnam and China is inevitable, objective and normal. This relationship is mutually beneficial and interdependent.” Dung noted.

The PM also directed the State Bank of Vietnam (SBV) to continue dealing with bad debts associated with increasing credit debt efficiency, especially in the agricultural sector and exports and effectively controlling the gold market and the stock exchange.

Ministries, sectors and localities were urged to promote economic restructuring with a focus on expanding import-export, tourism, investment and labor markets.

He also asked them to intensify measures to combat smuggling, counterfeit and substandard goods and continue to implement policies and programs to ensure social security and social welfare as well as pay attention to law and ordinance-making programmes.

Cabinet members also gave opinions on a Government Decree on a number of policies and solutions for fisheries development until 2020 which will prioritize infrastructure development such as fishing ports, storm shelters, and purchase of equipment for offshore fishing.

The Government Decree also aims to expand the scope of objects and insurance policy application to encourage and reduce risks for fishermen involved in offshore fishing activities thus increasing civilian presence on the waters of Vietnam's sovereignty.