Entering year 2009, our economy remains difficult. One of these is the 2008 high inflation; another one is macro-economic balance remain unstable; finally, the frustrated evolution of natural disaster and diseases, which become the main factors lessening the 2009 economic growth rate. Besides, the 2009 world economy is projected to be threatened by unanticipated risks. Financial crisis and economic slowdown worldwide directly impact on our economy, inducing production and business and exporting to lessen, which effect the peoples lives.

In addition to disfavoured factors, we also take advantages when entering the 2009 plan which are: completion of the socialist-oriented market economy mechanism is strengthened as the pace of integration and international commitments. The countrys politics stability and prestige on international stand is much improved, together with initial results in inflation control, economic stabilization, which are reprequisites to mobilize resources internally and externally for fast and stable development of the economy.

2. Objectives and main indicators of the 2009 socio-economic development plan

2.1. Overall objectives: at Session 4 of the 12th National Assembly, the resolution 23/2008/QH12 on the 2009 socio-economic development plan was approved in November 06,2008, in which shown the overall objectives: continuing to control inflation, stabilizing macroeconomics, keeping economic growth rate stable at reasonable level, actively preventing slowdown, ensuring social security; push up the international cooperation and integration effectively; keep the politics environment constant, ensure the national defense and security; create favourable conditions to successfully execute the five year socio-economic plan over period 2006 - 2010.

Finding out the heavily distorted world economic development, the government has focused to execute those overall objectives in which the urgently focal objective is consolidation of every effort to curb the economic slowdown domino effects, pushing up the production and business and exporting, promoting investment and consumption, ensuring social security and striving for the 2009 economic growth rate at 6.5% of GDP.

2.2. The 2009 socio-economic plans indicators

(1) GDP growth ratem will rise by 6.5%

(2) Added value of agriculture, fishery, forestry will rise by 2.8%; added value of construction and industry 7.4%; service 7.3%.

(3) Total exports turnover will rise by 13%

(4) aggregate social investments will account for 39.5% GDP.

(5) Consumer price index will be kept below 15%.

(6) Birth rate will reduce by 0,2%o.

(7) 1.7 million jobs will be created, in which the number of people working overseas will reach 90 thousand.

(8) the poverty rate will be kept below 12%.

(9) The coverage rate of forestry will reach 39.8%.

II. THE 2009 FINANCIAL-BUDGETARY OBJECTIVES AND DUTIES

2009 and 2010 are two closing years of implementing the 10th Party Congress resolution and the five year socio-economic plan over period 2006 - 2010 approved by the national assembly. Therefore, the performance will pay a crucial role in completion of budget tasks over period 2006-2010 and the ten year socio-economic strategy over period 2001-2010.

In order to completion of the five year socio-economic plan over period 2006-2010, based on the three year performance review over period 2006-2008, the 2009 financial - budgetary objectives and duties are determined as follows:

Objectives: Ensuring a sound rate of state budget revenues as share of GDP; composition of spending gives priority to people and social security, tightly controlling expenditures, lessening the budget deficit, paying contribution to restrain economic slowdown, to stabilize macro economy, to insure economic growth rate will be reasonable and sustainable.

Financial - budgetary duties:

- Continue to reform the legal system of state budget revenue; insure a sound rate of state budget revenues as share of GDP; promote enterprises to increase savings and expand production, renovate the production technology.

- Restructure the state budget on the basis of increasing share of spending on people, and at the same time pushing up socialization of capital, maximizing the internal and external resources for investment.

- Speed up the execution of policies on social security and salary; to protect environment, investment in rural development, areas in difficulty,...as resolutions by the party and national assembly; to insure tasks on national defense and public security.

- Practice thrift in spending, striving for lessening budget deficit.

For the 2009 budgetary-financial objectives and duties, the 2009 budget plan will be constructed as follows:

1. State budget revenue

Total state budget revenue is projected to reach VND 389.9 trillion, accounting for 23% of GDP, in which tax and fees 21.5% of GDP. Including:

(1) Domestic revenue (excluding oil) is projected to reach VND 233 trillion, rising by 23.1% over the 2008 plan.

By cross-sector composition, the revenue from the state economic sector is projected to rise by 15.6% over the 2008 plan; revenue from the foreign invested sector will rise by 28.4%; revenue from the non-state sector 21.5% (the low growth rate of revenue results from shifting business households to pay personal income tax, therefore revenues from this sector will reduce about VND 6 trillion, if excluding this factor, real excessive revenue rate is 29.5%); personal income tax will rise by 46% (mainly owning to increase in the number of tax payers).

On the scale, in 2009 there will be 11 localities having the domestic revenue of over VND 3 trillion, in which 5 provinces with over VND 5 trillion, increasing one compared to the 2008 performance (Hai Duong province); 25 provinces with revenues ranging from 1,000 - 3,000 billion dongs, increase more 2 provinces (Thai Binh, Thai Nguyen); there are 15 provinces left with revenues below 500 billion dongs, decrease 2 provinces (Dak Nong, Hoa Binh).

(2) Oil revenue is projected at VND 63.7 trillion or 97.1% as planned in 2008 on the basis of production volume 15.86 million tons, average price 70 USD per barrel.

(3) Net revenue from export-import activities:

Construction of revenues from customs duties is based on exports turnover rising by 13%, turnover of imports rising by 16% compared to 2008. At the time, in 2009 tax instruments will continue to be used to curb importing non-essential consumer goods, to curb exporting raw materials, to regulate imports duties on petroleum products in accordance with world price changes. Some factors causing reduction in revenue due to cut-down import duties in accordance international commitments; actively push up administrative procedures, customs procedures, and examination after clearance; actively prevent smuggling, trafficking, trade fraudulent and tax evasion.

Based on those above assumptions, the net revenue from customs duties is budgeted at VND 88.2 trillion, rising by 36.7% compared to the 2008 plan, of these revenues from imports tax, exports tax, excise tax 56.6 trillion dongs, over 2 times higher than that of 2008, value added tax 64.6 trillion dongs, rising by 10.8% over 2008.

(4) Grants are budgeted at 5 trillion dongs, maintaining the 2008 performance.

In summary, the 2009 state budget revenue is budgeted at 389.9 trillion dongs, rising by 20.7% over 2008, revenue as share of GDP reaches 23% (of these tax and fees 21.5% of GDP). In difficult economic context, at the same time execution of the revised Law on Enterprise, the revised Law on personal income tax, and the revised Law on value added tax will favor enterprises production, business, which will cause reduction in revenues in short term, some soaring revenues will not bear in 2009, the above budgeted revenue remains high, risky, requiring great effort made by sectors, levels, localities.

On the 2009 revenue composition, domestic revenue accounts for 59.8% of total revenue, oil revenue 16.3%, and net customs revenue 22.6%.

2. The state budget expenditure

The plan for 2009 expenditure is constructed on the basis of restructuring spending, towards controlling inflation, stabilizing macro-economy, and assuring the below principles:

- Continually restructure the state budget expenditures, ensuring social security policies and salary reforms, several increases as salary increases;

- Arrange contingencies, national reserves to insure food security and to actively prevent and resolve consequence caused by natural disasters, diseases; arrange debt repayment as committed;

- Arrange funds for education, healthcare, science and technology, culture and information, environment protection, agricultural and rural development,...as the resolutions by the party and national assembly.

- Insure the needs for other tasks with a principle of tightening spending; continue to examine to tighten capital expenditures, arranging current expenditures for ministries, central agencies and localities remains unchanged over 2008; lessen the budget deficit below 5% of GDP.

Based on the above objectives, duties and principles, the 2009 state budget expenditure is projected at VND 491.3 trillion, rising by 23.1% over the 2008 plan; the extra increase is focused on the below main tasks:

(1) Appropriating 61.6 trillion dongs to ensure implementation of social security and to reform salary, of these:

- Appropriated at 25 trillion dongs to increase assurance of implementing pro-poor policies, ethnic minorities and in-policy beneficiaries such as purchasing health insurance cards for the poor and quasi-poor, extending exemption of irrigation fees, covering discrepancies of interests of lending to poor households, students, pupils, etc.

- Appropriated at 36.6 trillion dongs to reform salary. From January 01- April 30,2009, assistance policies will be upheld, to assist the low-income staffs in difficulty a package of 270 thousand dongs per person; readjust up 10% with pension, assistance to the revolution merits from the fourth quarter in 2008. From May,2009 minimum wage will be regulated to new level 650 thousand dongs per month, rising by 20.3%; an extra of 5.3% of assistance to pension scheme, social insurance, and the revolution merits. That readjustment is preliminarily suitable with increase in prices; at the same time, avoiding readjustments during Tet holiday, avoiding the second round of price increase in other goods and services while keeping the assistance to the low-income, pension for the retired, the revolution merits.

(2) An increase of 7.6 trillion dongs to repay due debts (its principle and interests from issuance of government bonds).

(3) An increase of 4.9 trillion dongs in education, science and technology, information, culture, environment, ensuring the share of education in total expenditure reaches 20%, science and technology 2%, culture and information over 1.5%, environment over 1%; higher spending in health care to insure its rate higher than overall spending rate as the national assemblys resolutions, increase spending in agriculture, farmers and rural development, the youth, the intellectual circles, collectives, etc, as the resolution by the Party.

(4) An increase of 3 trillion dongs in contingencies, and national reserves, food security and prevention of natural disasters and diseases.

As the above principles and assumptions, the state budget spending is projected as follows:

2.1 The capital investment is appropriated at 112.8 trillion dongs, rising by 13.1% over the 2008 plan, accounting for 23.0% of total budget spending. The increasing amount will be used to execute key tasks as follows:

- Increase assistance to execute social security policies such as granting difference in state credit interests, lending to the ethnic minorities to expand production, lending to students in difficulty for study, to invest in socio-economic development at boundary communes Vietnam-Laos, Vietnam-Cambodia; provide transfers to implementation the program 135, national target programs, five-million hectare reforestation project; policies on resettlement, arable lands and jobs creation for ethnic people,…

- Increase funds to purchase goods for national reserves to insure food security, petroleum reservation, emergency materials and facilities.

- Increase capital spending in education, science and technology, culture and information, agricultural and rural development, etc.

Thirty six trillion dongs of government bonds will be issued to execute projects of transportation, irrigation and innovation of classrooms, inter-district or district-level general hospitals, medical stations at communes, pulmonary tuberculosis hospitals, psychological hospitals, pediatrics hospitals, cancers hospitals and some of them in the remote and mountainous areas. If including investments from government bonds and lotteries, total capital investment in 2009 shall reach 29.1% of total budget spending. If adding investments by domestic and foreign investors, the aggregate social investments shall reach 39.5% of GDP.

2.2 Debts repayment and grants: an amount of 58.8 trillion dongs will be appropriated to repay internal and external due debts and provide grants, rising by 14.8% compared to the 2008 plan, accounting for 12% of total budget spending.

2.3 Spending on development of socio-economic tasks, national defense and security, administration is budgeted at 269.3 trillion dongs[1], rising by 28.9% compared to the 2008 plan, or 54.8% of total budget spending; if including spending on salary reforms, it will account for 62.3% of total budget spending. The increasing amount will be focused on the key tasks as follows:

- Strengthening social security policies such as to increase assurance of implementing pro-poor policies and fishermen, ethnic minorities and in-policy beneficiaries; health expense exemption for children under six, the poor and quasi-poor households, extending exemption of irrigation fees; and funds for insuring social security policies as Decision 24/2008/QD-TTg, Decision 25/2008/QD-TTg, Decision 26/2008/QD-TTg, Decision 27/2008/QD-TTg of the Prime Minister promulgating socio-economic policies in regions such as CentralNorthern region, and Central coast region, Central highlands, Mekong river delta, Midland and Northmountainous region till 2010; transfers funds to execute policies on cadres at communes and execute policy on abrogating fees and charges; supporting residential lands, farming lands and job creation to the ethnic minorities, the poorm, etc.

- Increase current expenditures to ensure the shares of sectors as resolutions by the party and national assembly (education 20%, science and technology 2%, culture and information over 1.5%, environment over 1% of the total budget spending), higher spending on health care, on the Agriculture, farmer and rural development project.

- Increase spending on national target programs and on new policies bearing in 2009.

Some key sectors of current expenditure will be appropriated as follows:

- Education sector is allocated at 67.33 trillion dongs, rising by 10.1% over the 2008 plan. This spending together with capital expenditure, investment from lotteries, government bonds, and salary reforms, which assures the sharing rate as 20% of total budget spending. Focus on execution of major tasks such as Education program (4 trillion dongs, rising by 14.9%); maintaining records of obligation education at right schoolage, execution of secondary education obligated as real conditions of each province; improving quality of education, education management; pushing up application of technology in education administration; expanding the net of schools; enhancing schooling facilities; expanding IT infrastructure; professional training, especially for peasants as the 7th central congress resolution (10th term); arranging funds for execution of the "Project retraining staffs overseas by state budget source" as new living expense and “Project strengthening law experts, lawyers to serve international integration over period 2008-2010”; assuring fostering administration managers overseas by state budget sources; executing nationwide 3 programs: education obligated with children at five, construction of gifted schools, expansion of boarding schools; giving priority to expansion of size of job-oriented and application programs; expansion of advanced programs and credits training; encouragement of using electronic textbooks; execution of program training 20 thousand doctors; developing four international standard universities: Vietnam -German University (in Ho Chi Minh city), Technology University (in Hanoi), Danang University, Can Tho University. On current expenditures, state agencies with operating revenues, service charges have to raise the level of self-affordance from their revenues, giving way to other agencies assured by the state budgets.

- Healthcare is allocated at 23.36 trillion dongs, rising by 21.8% over the 2008 plan. This spending together with capital expenditure, investment from lotteries, government bonds, and salary reforms, which assures the growth rate as 28.9% over the 2008 plan, higher than the overall spending growth as the the Resolution 18/2008/QH12 by the National Assembly on enforcement of legal policies, socialization of mobilizations in order to improve peoples health. Of these, the extra amount of spending will be used to ensure health examination, treatment, prevention of diseases, counterparting funds to receiving official development assistance projects; spending on the national target program on prevention of social diseases and HIV/AIDS (1.22 trillion dongs, rising by 23.2%), the program food hygiene and phisosanitation (130 billion dongs, rising by 18.2%); purchasing health cards for the poor and quasipoor, children under 6, equipvalent to 3% minimum wage; expense bearing due to amending assistance policy to health staffs at villages, mountainous hamlets,... On current expenditures, state agencies with operating revenues, service charges have to raise the level of self-affordance from their revenues, giving way to other agencies assured by the state budgets.

- Science and technology is appropriated at 4.39 trillion dongs, rising by 12.9% as planned in 2008. This spending together with capital expenditure, investment from lotteries, government bonds, and salary reforms, which assures the sharing rate as 2% of total budget spending, an extra funds will be used to give priority to ensurance of scientific and technological programs at national level; thesis (topics), independent projects at national level; the large-scale scientific and technological projects; basic research, programs to build partern of application and transfer of technology to serve the socio-economic development in rural and mountainous areas; cooperation as treaties; development of scientific and technological market; large centre for science research, big labs; executing tasks relating to the Resolution 7 on development of intellectual issues,etc;

- Culture and information is allocated at 2.74 trillion dongs, rising by compared to the 2008 plan. This spending together with capital expenditure, investment from lotteries, government bonds, and salary reforms, which assures the sharing rate as 1.62% of total budget spending, an extra funds will be used to give priority to execute key tasks: the culture programs (210 billion dongs, rising by 16,7%), assistance to creating new pieces of arts, literature, news with high quality; funds for executing the resolution by Politburo on building and developing culture and art in new eras; funds for holding the 16th Vietnam Movies Festival; funds for celebrating important festivals; participating EXPO in Shang Hai; organizing the international gongs festival; current expenses and rewarding funds for central literature and arts associations; rewarding national newspapers; funds for the project surveys, collection and producing bookcase "Thang Long, dragons flying, thousand years of literary heritages",...

- TV and Radio broadcasting is allocated at an amount of 1.56 trillion dongs, rising 5.5% over the 2008 plan in order to insure the TV and radio broadcasting, renewing and improve the quality of broadcasting programs, prodution of news; public services, online e-broadcasting for overseas Vietnameses; radios programs with picuters; holding the summit conference on TV and radio broadcasting within French speaking community.

- Sports is appropriated at 1.32 trillion dongs, rising by 47.3% over the 2008 plan. The increasing amount will be used to execute the 2009 bearing key tasks such as organizing Asia Indoorgames 2009; participating Seagames 2009 in Laos; rising up cost of meals for sports players; higher rewards for some sports competition.

- Pension and social security are budgeted at 51.93 trillion dongs, rising by 19.2% over the 2008 plan in order to assure salary pension for the retired, insurance assistance to state budget-funded beneficiaries (25.91 trillion dongs, rising by 13.3%); regularly assist the war wounded soldiers, the war martyrs families and revolution merits (15.63 trillion dongs, rising by 15.4%); one time payment for the kindred of the revolution merits who died before 19 August, 1945; seeking for and consolidation of martyr tombs; execute the program prevention of drugs (280 billion dongs, rising by 40%), the program prevention of crime (80 billion dongs, rising by 11.1%), prevention of social evils (prostitution, women trafficking and children trafficking cross over boundary); purchasing health insurance for kindred of cadres, officers, soldiers join up the armed forces; social security; purchasing insurance for shipbody and for sailors and fishermen; protection and care of children and other social security policies.

- Economic services is allocated at 22.23 trillion dongs, rising by 39.8% over the 2008 plan; of these, giving priority to professinal tasks 7.441 billion dongs (social security, for example, exemption of irrigation fees about 3.500 billion); assistance to some provinces due to exemption of some fees and charges; developing socio-economics at boundary communes Vietnam-Laos, Vietnam - Cambodia; execute the project replanning residential areas (150 billion dongs); demarcation works of Vietnam-China, Vietnam -Laos, Vietnam-Cambodia (400 billion dongs); some projects of the program 135, the poverty reduction program and job creation program (657 billion dongs); saving of energy and effectiveness program (25 billion dongs); program on working protection; prevention of livestock diseases on mouth and hoof, avian flu (160 billion dongs), ensuring safety travel on roads, and railways; Regarding current expenditures of ministries, central agencies and localities, giving priority to encourage agriculture, fishery, manufacturing production; protecting and managing forests, the breeding program; promoting trade and investment, maintaining important works like roads, dikes, bridges, drains, irrigation works, transport works; executing key projects such as land management; surveying and mapping the land and housing files, granting land user right certificate; basic surveys for planning and managing sectors, industries. Other duties keep unchanged over the 2008 plan.

- Environment protection is appropriated at 5.15 trillion dongs, rising by 32.6% over the 2008 plan and accounting for over 1% of total budget spending in order to main tasks by the Laws on environment protection and the resolution 41/NQ-TW by the politburo; execute the strategy on national environment protection till 2010 and orientation towards 2020, the action program by the government on environment protection; assistance to ministries, sectors, localities to treat institution causing polution in the public areas, the national plan for controlling polution till 2010; the national target program on freshwater and rural environment sanitation (97 billion dongs); providing assistance to poor communes in the coverage of the program 135 to leave the toilets, feeding facilites (50 billion dongs); the program on climate changes; transfers to the chartered capital of Vietnam Environment protection (100 billion dongs; protect and sustainably develop ecological environment, views at rivers section; survey and analyse environment polution.

- Administration activities are appropriated at 33.63 trillion dongs, rising by 8.6% over the 2008 plan in order to insure new tasks: General Population Census; justice and legal reforms and new tasks of the Peoples supreme court, Peoples investigation institute, Ministry of Justice; new setup of overseas representatives offices; foreign affairs, overseas Vietnamese tasks, overseas out-working delegations; Festival of some unions and holding Asean Tourism Forum; new staffs of ministries, central agencies; contributions to international organizations; providing assistance to kindred of war martyrs and religious associations,…The current expenditures allocated to ministries, central agencies preliminarily keep unchanged compared to that of the 2008 plan.

- Subsidies to policy commodities is budgeted at 930 billion dongs, rising by 21.9% over the 2008 plan to ensure no fees to access certain newspapers, magazines in the mountainous and ethnic minorities areas; providing assistance to transportation, prices of certain commodities to the extreme poor ethnic minorities; ensure the delivery of newspapers and magazine regularly as regulated; finance costs of newspapers, magazines and its transport cost to overseas vietnamese offices.

2.4 National target programs, program 135, and five million hectare reforestation project is allocated at 9,168 billion dongs to ensure these programs as approved. Program 135 about 3,284 billion dongs for projects at extreme difficulty communes, villages and high areas hamlets as approved by the authorities. Five million hectare of reforestation project about 1 trillion dongs based on tasks and spending norms as the Resolution 73/2006/QH11 by the National Assembly.

2.5 Salary reform is budgeted at 36.6 trillion dongs, representing 7,4% of the total budget spending.

2.6 Local financial reserves funds is allocated at 100 billion dongs.

2.7 Contingencies is allocated at 13.7 trillion dongs, representing 2.8% of the total budget spending.

3. State budget balance

The 2009 budget deficit is decided at 87.3 trillion dongs by the national assembly, representing 4.82% of GDP, to be financed by internal borrowings 71.3 trillion dongs and external ones 16 trillion dongs.

4. Acchievements and shortcomings in the fiscal execution need solving as follows:

4.1 Achievements:

- State budget revenues is projected to reach 23% of GDP, of these tax and fees 21.5% of GDP, is a quite a fair level, is constructed in assumptions such as economic slowdown, sudden changes in the markets and solutions to control inflation kept, regulating tax policies makes revenue reduce in the short term,...

- State budget expenditures is restructured towards focusing on social security, on people development through education, health care, science and technology, at the same time readjusting the salary at higher level than the roadmap approved.

+ The shares of spending on sectors such as education, sciene and technology, culture and information, environment protection, healthcare are basically assured as resolutions by the party, the national assembly; strengthen execution of the project development of agriculture and rural areas, peasants.

+ The internal and external duedebts payments are insured .

- State budget balance: the 2009 state budget deficit is kept below 4.82% of GDP (reducing 3.7 trillion compared with rate of 5% of GDP), paying contribution to control inflation.

4.2 Shortcomings in the fiscal execution need solving soon

- The 2009 state budget revenues were constructed in the context that remains unprecedentedly risky; of these, the domestic revenues, revenues from export-imports duties mainly depending on controlling inflation, stabilizing macro-economy and expanding production and business; revenues from crude oil depends heavily on production exploited and price changes.

- The 2009 state budget expenditures though were restructured, remains difficulty: capital expenditure was budgeted to rise by 10.1% compared to the 2008 plan, however remains low compared with its need, it is required to examine to select out key projects. At the same time, mobilization of investments for economic development from other economic sectors is to be enhanced.

+ Needs of spending that is not afforded as required, for example, subsidies to interest discrepencies of concessional credits, recollect the advanced funds as planned,...However, in the execution, if having extra revenues from central budget level, the government will transfer funds to execute these tasks.

+ In order to carry out the inflation controlling objective, the deficit was lessened, however, not much due to the need for social security and capital expenditure remains high. If further cut spending down, we have to reduce the capital expenditure, which become so complicated.

+ Current expenditure is allocated to ministries and central agencies, localities besides the extra spendings as policies and new tasks, the remaining expenditures are not changed over the 2008 plan, meanwhile the large change in prices is a big challenge, requiring ministries, central agencies, localities continue to practice tightening and increasing effectiveness of their spending.

- Contingencies allocated reach 2.8% of total budget spending, of these local contingencies at 3.5% of local spending, ranging from 3-4%; central contingencies at 2.4% of total central budget spending, which quite low in comparison with the need of prevention of natural disasters, diseases and other unprecedented urgent tasks.

III. KEY SOLUTIONS GROUPS TO EXECUTE THE 2009 BUDGET PLAN

In order to successfully carry out the 2009 fiscal tasks, at session 4 of the 12th national assembly, 8 key groups of solutions have been drawn to solve the fiscal distortions as well as curb economic slowdown, promote production - business - export, stimulate investment and consumption. To achieve these goals, the government has discussed with ministries, sectors and localities to design and execute the following group of solutions:

(1) Promotion of production, business and stimulation of exporting

- Focus on constructing programs, projects to develop agriculture and farmers and rural areas as a resolution at the 7th conference of 10th central party steering board; urgently recover socio-economic infrastructure that supports and favors for stabilization of peoples lives affected by storms and floods; loosening difficulties to production of agriculture, forestry and fisheries.

- Push up the production of domestic consumer goods, particularly food, drinking, textile, medicine; give priority to goods branches that can replace imports, using domestic materials, heavily using employment; assistance to consumption of some industrial products such as raw steel, construction steel, cement, fertilizers, paper, chemicals.

- Consolidate resources, drastically direct to speed up progress of completion of construction projects, uncomplete projects, especially big projects.

- Flexibly manage exchange rate, tax, trade towards promoting exportation, controlling trade deficit; controlling materials imported; encourage processing goods for increase in export turnover of sectors using more workers and domestic materials.

- Enhance promotion of trade, investment and tourism; widen the exporting market into regions that suffer least from the financial crisis and economic slowdown; push up signing economic cooperation treaties with key partners; speed up promotion of tourism on international T.V. channels.

- Design programs on renovation of technology, application and development of high tech to production and business of sectors in order to enhance quality of goods and its competitiveness.

- Provide assistance to invest technology after harvesting farming, fishery, forestry produces that help farmers reduce loss, sales effectively; assistance to build centres for marketing farming production in concentration and in a large size, develop centres for controlling quality of exporting aquatic products.

(2) Stimulation of investment and consumption:

- Projects and works funded by the state budget will be continued to be disbursed the remaining funds from 2008 by end of June 2009; some urgently key projects and works did not accessed to funds disbursed, will have to be completed its investment procedures to sooner commence and are accepted to withdraw advanced payment to carry out. Temperarily recollect the 2009 plans advanced payments, except for ones to complete projects in 2008, and to increase resources for investment of ministries, sectors, and localities.

- For projects and works using government bonds, its is necessary to urgently complete the method to allocate the 2009 government bond budgets; allowed to readjust total investments in projects belonging to portfolio assigned, therefore harmonizing capital among projects and receiving payments as scheduled. At the same time, it is allowed to disburse the remaining capital of the 2008 in 2009. Push up construction and innovation of irrigation system and dikes; to improve capacity of irrigation and prevetion of storms and floods in the Red River Delta.

- Continually attract and speed up disbursement progress of FDI, ODA; try to ensure its disbursement of these funds in 2009 is not less than 2008.

- Continue to manage price towards market prices some commodities: electricity, coal, fresh water, public bus transport cost,...strengthening and completing the distribution system of essential goods such as food, petroleum, fertilizers, steel, cement, medicine...; tighten prevention of trade fraudulent, speculationm, rising up prices, causing market distortions, protecting consumers interests.

(3) Monetary and fiscal policies:

- Corporate income tax (CIT) payment duedate will be extended, tax rate will be cut down. Particularly, the 4th quarter 2008s CIT and the 2009s CIT of small and medium enterprises will be cut down 30%; extend the CIT payment date within first 9 months in 2009 for SMEs (70% of total tax payment remaining) and for processing enterprises in sectors agriculture, forestry, fisheries, textile, footwear, electronic linkages.

- Input-VAT on real commodities exported will be temporarily repaid in the case of enterprises did not receive the payment documents via banks and 10 % of remaining tax will be settled if full of payment documents are submitted.

- Import tax rates will be readjusted on certain exports such as natural resources, minerals towards curbing exporting, ensuring domestic production materials. The imports tax rates also will be regulated on certain imports such as input materials that can not be produced in domestic market or if can, however, unable to afford the need of production in accordance with the WTO commitments, favoring domestic production and curbing trade deficit.

- The grace date of tax payment with certain commodity branches (shipbuilding, mechanic production,..) will be extended how to be linked with production cycle. The procedures of exporting and importing goods will be reformed, customs clearance time reduced. Procedures of tax repayment and tax settlement with materials imported to produce, process to export will be simplified. The rates of wasted materials, wasted products in the importing process to export will be clarified to be exempted from import duties.

- Monetary policies will be executed adaptably, effectively; exchange rate will be controlled towards encouraging export, curbing import, stabilizing macro economy, trying to not be deficit in the international balance of payment.

- Enterprises will be easier to access credit capital, especially small and medium enterprises if facing difficulty to sale their products, through measures such as reducing mandatory reserve rates of crediting institutions; basic interest will be readjusted to favor enterprises prodution and business.

- Small and medium enterprises will be guaranteed to borrow capital via the bank for development of Vietnam, supporting them in accesion of capital to expand the production and business, create jobs for people.

(4) Social security

- Timely support foods, costs of house maintenance, prevetion of diseases, breeds of plants and domestic animals,... to quickly restore the production and stabilize the peoples lives in the flooded, disaster areas. National reserve commodities will be enhanced to actively assure the emergency activities to avoid starvation in that disasters suffering areas.

- Policies support investment in poverty reduction shall quickly be issued in 61 poor districts. Other policies that support accommodation for the poor, in-policy beneficiaries, accommodation for workers at centralized industrial zones, accommodation for students; support income for the in-policy beneficiaries, and for people who suffered from floods, and natural disasters.

- Direction to execute the poverty reduction programs, policies on supporting arable lands, accommodation lands, accomodation and water for the poor ethnic people shall be strengthened; execute unemloyement insurance as stipulated in the Law on social insurance; provide assistance to the state employees with low income; increase budgets to provide training professional skills to get jobs for people in rural areas, especially the poor households, paying contribution to improve their living standards.

Calculated as new minimum wage allocation (540 thousand dong per month).

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