Section I 14/02/2008 08:57:00 884

SECTION I

OVERVIEW OF Socio-Economic DEVELOPMENTS and

BUDGET performance  IN FY2007

I. 2007 Socio-economic indicators performance

1. Economic growths

2. Export and import

3. Corporate development

4. Market prices

5. Investment

6. Globally economic integration tasks

7. Social affairs

II. Fiscal performance in FY2007

1. State budget revenues

2. State budget expenditures

3. State budget balance

4. Tasks of controlling market prices, activities of stock market

I. 2007 Socio-economic indicators performance

Outturns of major indicators in the 2007 socio-economic Development Plan as follows:

            1. Economic growths

            The economy continued to grow stable, recorded the highest growth rate over past ten years; economic structure shifted positively. 2007 GDP growth rate expanded by 8.48% (the planned was 8.2-8.5%); of which, the added value of agriculture, forestry and fishery sector increased by 3.41%, of contruction and industry 10.6%, of service sector 8.68%. GDP at current price obtained VND 1.144 trillion (USD 71.4 billion), GDP per capita was VND 13.4 million or USD 835 (USD 820 as planned).

Economic structure continued the positive transition towards increasing the share of industry sector, construction and services sector, decreasing the share of agriculture sector. In the components of 2007 GDP: agriculture sector accounted for 20.25%, industry and construction 41.61%, service 38.14% (those of 2006 were 20.36%:41.56%:38.08% respectively).

(a) Industrial production proceeded to grow rapid, typically nonstate sector and foreign invested enpterprises

Added value of industry sector increased by 17.1% (at 1994 comparative price) compared to that of 2006 (the planned was 17-17.2%); of which the industrial production of nonstate sector obtained the highest growth (20.9%), foreign invested sector 18.2%, state sector 10.3%. Added value of industry and construction increased by 10.6% compared to that of the same period of last year (the planned was 10.5-10.7%).

(b) Agriculture production continued to grow

Added value growth of the whole sector approached 3.41% compared to its of 2006 (the planned was 3.5-3.8. The above  low outturns were caused from the decrease in rice-growing areas, reduction in productivity and output of paddies in Winter-Spring season due to diverse weather conditions and  diseases affecting plants, castles, and avian.

Afforestation areas attained 197,700 hectares; wood exploiting output was 3.26 million cubic meter. The coverage rate gained 38.8% (39% as planned).

(c) Services sector has critical changes, and 2 following years gaining a better rate compared to the  growth rate of the overall  economy.

Estimate of added value of service sector rises by 8.68%, exceeding the planned number (the planned was 8.3-85%).

2. Export and import

 a. Export turnover was estimated at USD 48.4 billion (67.8% of GDP), 21.5% higher than that of 2006 (the planned number was 17.4%), of which, export turnover of foreign-invested sector (excluding oil) was estimated at USD19.4 billion, 40% of the total share, 31.2% higher than 2006. Export turnover per capita was 560 USD.  

Export turnover of core commodities gained high growth rates (oil exportturnover rose by 2.6% due to the rise in oil price). There were 10 exports with turnover over USD1 billion such as oil-USD8.5 billion, textile-USD7.8 billion, footwares near USD4 billion, fisheries-USD3.8 billion, rose by12.9%; wooden products-USD2.4 billion, rose by 22.3%; electronics and computers USD2.2 billion, rose by 27.5%; coffee-USD1.8 billion, rose by 52.3%; rice USD1.4 billion, rose by13.9%; rubber-USD1.4 billion, rose by 8.8%; coal over USD1 billion, rose by 11.3%.

Market shares of exports were expanded. Components of exports shares were Asian market 47% (rising by 20% over 2006), European market 22% (rising by 30%)- of which EU- the largest partner (rising by 29%) sharing 19.5% in the total, American market 23% (rising by 24%) - of which United States of America sharing 20% (rising by 23.5%), and the rest component falled in Oceanian market sharing below 20% of the total due to decrease in exports of oil.

Export turnover of services was estimated at USD 6 billion, increasing by 18.2% compared to that of 2006.

b. Aggregate imports turnover was estimated at USD60.8 billion, rising by 35.5%; of which domestic sectors reached the value of USD39.2 billion, rising by 38.1%; foreign-invested enterprises with value of USD21.6 billion, rising by 31%. Turnovers of major imports: petroleum obtained USD7.5 billion, rising by 25.7%);  steel USD4.9 billion, rising by 66.2%; machinery-equipments-spare parts USD10.4 billion, rising by 56.5%; electronic linkage USD2.9 billion, rising by 43.7%; fabric USD4 billion, rising by 33.6%.

Imports turnover of services was estimated at USD 6.4 billion, increasing by 24.9% compared to that of 2006.

The shortcomings in export activities were owning to insufficient concerns on improving quality, creating trademarks and reputation of exports. Trade deficits continually increased, equivalent to 25.7% of total export turnover (the rate of 2006 was 12.7%).

3. Corporate development

Delegation in FDI, continual revision in procedures of business licensing and investment certificate, "one-door" procedure, which have resulted in positive effects, encouraging investors in expanding their businesses.

By 31/12/2007, total number of enterprises licensed was about 54,000 with aggregate registering capital of VND 470 trillion. Number of SOEs restructured by the annual plan are 650, including privatization of 550 enterprises. Most SOEs after reform and privatization operate efficiently; their capital and production sizes have been expanded; corporate profits and labors income have been improved.

Collective economic sector grew gradual. By the end of 2007, there have been 17,880 collectives nationwide, including 871 new establishments.

4. Market prices

2007 Consumer Price Index (CPI) inflated relatively than previous years, was estimated at 12.36% by the end of this year, the average Consumer Price Index increased by 8.3% over 2006.

CPI fluctuated due to the rise in prices of gasoline, steel, and cement,...The rise in prices of food and drinking (food and foodstuff) was due to changes in prices of global foods, rise in demand for food in many places worldwide, and partly by losses in harvest, diseases in domestic animals.

 5. Investment

            Capital for development investment, especially Foreign Direct Investment (FDI) and investments by private and nonstate sector, has increased because business environment was improved. Aggregate investment capital of the whole society was estimated at VND461.9 trillion, 15.8% higher than that of 2006 and making up 40.4% of GDP, of which the share of state sector in the total was 43.3% or VND200 trillion, rising by 8.1%; nonstate sector sharing 40.7% or VND187.8 trillion, rising by 24.8%; FDI sharing 16% or VND74.1 trillion, rising by 17.1%;

            6. Globally economic integration tasks gained a great number of posititve achievements; strengthening foreign cooperations has played a crucial role in expanding cooperative relationships and improving Vietnams position on the world stage; at the same time, to actively realize international commitments in the framework of WTO, ASEAN, APEC, bi-lateral relationships as well as multi-lateral relationships helps Vietnam facilitating in mobilizing resources of capital and technology, and promoting export. After one year being a memember of WTO, ODA fund and FDI funds recorded the highest-ever level; export-import turnover increased rapidly, market shares of export continued to expand both tradittional markets and potential markets.

            7. Social affairs attained a large number of positive achievements; specially poverty reduction task continued to boost in parrallel with the Comprehensive Poverty Reduction and Growth Strategy and millennium targets. Poverty rate reduced at 14.7%, exceeding the planned rate of 16%.

Education: in 2007 the number of children going to kidergarten  was 438,9 thousand, nursery 2353,8 thousand, primary 6875,2 thousand, junior secondary school 5868,3 thousand and senior secondary school 3084,5 thousand nationwide. The rate of the new enrolled in higher education rose by 8% over 2006.

            Healthcare: health sector focused on prevention and cure diseases, disasters, foodstuffs hygiene and safe use. Line ministries, localities also focused on prevention of diseases in domestic animals.

            Environment: the rate of rural inhabitants using fresh water occupied by 69%, higher than targets by the NA (67.2%). Measures to treat polution-emitting units will be strengthened, the rate of treating polution-emitting units was 49%.

             II. Fiscal performance in FY2007

At the 10thSession, the 11thNational Assembly approved the Resolution 68/2006/QH11 on planning the budgetary projections in FY2007 with: total state budget revenues of VND 281,900 billion, total state expenditure of VND 357,400 billion; added with brought forward expenditure of VND 19 billion from 2006, state budget deficit in FY2007 was VND56,500 billion (5% of GDP).

2007 fiscal plan was executed with favourable conditions such as a new development of the economys internal strength, a stable political environment and significant achievements of the state apparatus reform after the election of the 12th National Assembly, expansion of international relations supporting the domestic economic development. Besides, FY2007 was also a year with difficulties and challenges such as natural disasters with large scale resulting in ravages of human and peoples possession, diseases in castles and avian, the unpredictable fluctuation in prices of significant inputs over the world (e.g.gasoline, iron and steel...), the rise in prices of domestic consumer goods resulting in quite a few negative effects on productions and social-lifes, etc. The 2007 fiscal performance could be summarized as follows:      

1. State Budget Revenues

The planned revenue of VND 281,900 billion was approved by the N.A, striving for the FY2007 revenue of VND 287,900 billion, 2.1% or 6,000 billion higher than the planned number, and 11.6% higher than the 2006 performance. Thereafter are some main records:

1.1 Domestic revenues: the planned revenue of VND 151,800 billion, its estimate of VND159,500 billion in 2007, 5.1%  or VND7,700 billion higher than the planned number or 21.4% higher than the previous years. Some revenues would be equal or exceeded the planned, relative higher than 2006 performance, including: revenue from Nonstate sector exceeding 10.3% the planned and 39.4% higher than year 2006s; personal income tax 12.1% and 32.4%; fees and charges 12.3% and 8.4%; registration fee 19.8% and 33.6%, etc. Which comprises:

(1) SOEs sector: The state sector though has been drastically restructured and privatized, it remains playing the core role in the economy generally and in the state budget revenues particularly. According to a preliminary report by the major economic groups and state corporations: the performance of production, business of their subsidiaries in 2007 was positive, 94% of those gains profits, 4-4.5% of those gains zero-profit, 1-1.5% makes loss; labors income has been better improved. The revenue from this sector was estimated at VND53,963 billion (33.6% of domestic revenues), fulfilling the planned, and 17% higher than 2006s.

However, the existing weaknesses of the sector are low productivity, weak competitiveness, utilization of comparative advantage remains low; some significant industrial products (production of gas, electricity, etc) failed to meet the demands, affected the development of some sectors in the economy.  

(2) Non-state sector: this sector has rapidly grown compared to that of FY2006, of which: production value of industry gained by 22,0%, investment capital expanded by 19,5% (34,4% of the aggregate social investment). Which facilitates its sectors revenue, attaining VND 30,508 billion, exceeding 10,3% (2.841 billion dong) compared to the planned, 39.4% higher than 2006.

There were 54,000 enterprises licensed with registering capital of VND470 trillion, and 871 collectives established (raised the number of collectives upto 17,880). This sector also received supports (capital and technology) from the privatized SOEs without upholding controlling-share by the state. Despite gaining a rapid growth in quantity, most nonstate enterprises have small-scaled productions with outdated technology and weak competitiveness. Besides, state management facilitating the growth of enterprises in some localities have yet to perform well, failed to meet the demands of enterprises development.

(3) Foreign-invested enterprises: FDI has grown considerable in 2007, with total registered capital of USD13 billion, USD1 billion (8.3%) higher than 2006; the FDI capital disbursed at 4.8 billion dollar, 17.1% higher than previous years. Some key manufacturing fields (automobile, motobike production, etc) which had been sufferred dificulties from consumer market in FY2006, has  preliminarily recovered in 2007, but failed to fulfil the plan. Besides, some FDI-funded enterprises whose business went under have to be restructured or transformed their business from the limited company into the joint-stock one so as to further capitalize, which affects the sectors contributions to the state budget revenue; mean while the number of enterprises which were new establishments remains being exempted from taxes as current policies. Therefore, revenue from this sector was estimated at VND30,378 billion, 25.5% higher than 2006, but failed to fulfil the planned target (equivalent to 97.9% of the target or VND663 billion less than the planned number).

(4) Revenues from lands and housing: Revenue from lands and housing has increased significantly, total revenues of these was estimated at VND21,724 billion, 19.7% (VND3,581 billion) higher than the budgeted number, 10.3% higher than that of FY2006; revenue from Land user right assignment increased by 10.3% (VND1,500 billion) compared to the planned number and 6.3% higher than previous years. The developments of real-estate market was more evenful than FY2006 due to the better growth in the economy, the significant increase in income of some groups of residents, and the rapid growth in demand for lands. Many localities (e.g Ba Ria-Vung Tau, Binh Duong, Ha Noi, Da Nang, Vinh Phuc, Bac Giang, etc) have actively raised land-funds and arranged auctions on land user rights, meeting the higher demands for lands, and creating more resources for localities budget.

(5) Domestic revenues at localities: To realize resolutions of the National Assembly, instructions from the Government and Party Committees, local governments have actively taken measures to fulfil the Plan for Socio-Economic Development and State Budget Projections in FY2007, especially measures on creating favourable conditions to lure local and foreign investors, promoting expansion of business and exportings, and increasing the state budget revenues.  Besides, local governments paid special attention to tax collection administration, and coordinate with collection managing agencies so as to enhance tasks of inspection, supervision, timely tackle the tax violations. Therefore, outturn of provinces and cities has increased considerably compared to the 2007 Plan assigned by the Prime Minister.

1.2 Oil revenues: Oil revenues in 2007 was budgeted at 71,700 billion dong. As estimates in 2007, the oil production is estimated at 15.75 million ton, a reduction of 1.93 million ton over the plan, resulting in reduction of 5,500 billion dong in revenue; oil price is averaged at 490.6 USD/ton (64USD/barrel), an increase of 14.8 USD/ton or 2 USD/barrel over the plan, an increase of 2,300 billion dong in revenue. If offsetting the fluctuating factors, oil revenues was estimated at 68,500 billion dong, 95.5% equal to the plan (or VND3,200 billion  lower), a decrease of 11,600 billion or 15.5% over FY 2006.      

1.3 The net revenue from inport-export activities: the planned number was VND55,400 billion, which based on total revenue from customs duties of VND69,900 billion, and refunds of VND14,500 billion for Value Added Tax (VAT) on imports. This net revenue is estimated at 55,500 billion dong over FY2007, basing on total revenue of VND74,000 billion (exceeding VND 4,100 billion over the plan) from customs duties and refunds of 17,500 billion dong (exceeding VND3,000 billion over the plan) for VAT on imports.

Aggregate turnover of imports and exports was estimated at USD105 billion, 23.9% higher than FY2006; turnover of imports USD57 billion and 27%. Many imports grow significant in quantity and turnover such as automobile (full set) with quantity of 19,000 sets, expanding by 52%; finished product of steel with volume of 5 million tons, expanding by32.9%; gasoline 13million tons and 16.1%, electronic linkages and computers USD2.5 billion and 22.1%; new medicine USD650 million and 18.6%, etc. In order to realize commitments of Vietnam to the WTO and in Free Trade Agreements signed, since beginning of this year the Government has adjusted imports-tax-rate of 26 groups of imports, comprising 1,812 items of commodities, equivalent to of the number of tax rates committed In the execution process, to restrain the rise in market prices and to eliminate negative effects of price fluctutation on the economic development, the Government continues to adjust to reduce the imports-tax ratesin 18 groups of imports (eg. gasoline, steel, foodstuff, milk, automobile, ect), which resulting in a decrease of VND3,000 billion in the state budget revenue.

Thanks to the well-preparation from budgeting phase, activeness in the execution, and a considerable increase in turnover of imports so that the impacts of tax-cut on the state budget revenue has been minimized. Besides, the customs sectors has taken measures to enhance the prevention of trafficking and trade frauds;  accomplishing the procedures for inspection, consultancy and evaluation of imports, and creation of a list of standards of price data to centrally control elastic imports with high level in trade frauds so as to prevent price shifting, tax evasion via price; pushing up the inspection after customs clearance; maintaining regular dialogues with enterprises to answer difficulties in procedures; and further pushing up the reform of customs procedures to facilitate businesses in decreasing their time and costs.

1.4 Revenue from grants: the planned was VND3,000 billion, the actual revenue was estimated at VND3,400 billion, expanding by 13.3% (VND400 billion) over the plan.

In summary, the task of collecting the state budget has attained significant achievements as follows:

Firstly, revenue execution has exceeded the plan approved by the N.A (exceeding 2.1%), accounting 25.2% of GDP, of which tax and fees revenue accounts for 23.4% of GDP (if eliminating the fluctation of oil price, accounting for 22.4% and 20.6% of GDP respectively). In the budgeting plan, this revenue was over-estimated (18.5% higher than the plan of FY2006), and in the budget execution, many difficulties has raised such as reduction in oil production, tax-cut on imports to stabilise the domestic market prices, etc. Over the above difficulties such the above oil revenue was positive. The structure of budget revenues has been better impoved, the share of domestic revenues in the total revenues rose from 52.1% in FY2006 to 55.7% in FY2007 (the average rate over period 2001-2005 was 52.4%), the share of the net revenue from customs duties rose to 19.6% from 16.2% (the average rate over 2001-2005 was 20.3%), the share of oil revenue reduced to 23.8% from 30.3% (the average rate over 2001-2005: 25.7%).

Secondly, impacts on the revenues after a year becoming the full member of the WTO has been basically in controlling range; in some sectors, the positive effects was higher than the negative ones. Domestic enterprises was quite positive in reform of management and improvement on quality of products; turnovers of imports and exports has increased considerably, and the export market continued to expand; ODA funds and FDI funds has reached the highest level than ever, ect as a result creating more resources for the development and for state budget revenue, the revenues from domestic and customs duties in 2007 went over as  planned by the N.A.

Thirdly, Management and treatment of outstanding taxes has shifted more as positively as previous years. Tax and Customs agencies overhauled, classified the outstanding tax of each payer to draw up the right measures should be taken to solve such as providing guidelines for firms to timely tackle tax delays of payers who were in exemption or tax clearance as regulations, requesting firms to drawup a plan to repay tax, coordinating with police agencies to tackle missing enterprises, etc.

2. State Budget Expenditures  

Total expenditure were budgeted at VND357,400 billion (including the brought forward expenditure of VND19,000 billion), but estimate reached VND368,340 billion, outmatching the target by 3.1% (VND10,940 billion) or 32.3% of GDP or 14.6% higher than FY2006.

Some main outcomes recorded as follows:

2.1 Development Investment expenditure were budgeted at VND99,450 billion, but estimate VND101,500 billion, 2.1% higher than target (VND2,050 billion) or 27.6% of the total expenditure or 8.9% of GDP, of which:

- Capital expenditures was estimated at VND97,280 billion, outmatching the plan by 2.2% or VND2,050 billion or 19% higher than FY2006. The expenditures focused on key infrastructures supporting the economic structure transition, improving efficiency of production, upholding the advantage of each region, sector, especially the infrastruture of provinces in the north mountainous area, in the West Central area, in the Central highlands, in the Westsouthern; Local budget contingencies and exceeding revenues (in land user right) have been used to cover core infrastructure projects in their localities.

In the execution, progress and disbursement of capital expenditures have been delayed during the first months of FY2007 due to the rise in prices of inputs and materials, the delay in guidelines from the authorities, etc. Many measures in the Directive 836/CT_TTg dated July02,2007 on enhancing the management of capital investments of the state budget have been taken to solve weaknesses in management of investment and construction, to reduce the overlaps in inspection, examination among the spending control phase and other phases, etc so that the progress of disbursement has been strengthened. Therefore by the end of FY2007 a great number of projects has been done and used, fulfilling the targets of socio-economic development.

In 2007, government bonds to finance key projects on irrigation, transports, construction of hydropower station in SonLa province, irrigation in mountainous area and rural roads to center of communes has been issued. The rate of bonds issuance approached 70%, going under as planned due to weaknesses in utilization of capital and the delays in disbursement. If added with expenditure from bonds issuance and lottery revenue, total investment expenditures reached VND123,700 billion, sharing 31.7% in the total expenditure or 10.8% of GDP. If added investments from the state budget, from domestic and foreign investors, total investment for the society reached 40.4% of GDP or 16.1% higher than FY2006.

2.2 Repayment and provision of grant was budgeted at VND49,160 billion,

the estimate went as planned, in order to repay for duedate debts of the state budget, minimizing the negative effects on macro economics.

2.3 Expenditures on development of education, healthcare, culture, social subsidies, defense, security, public administration and organizations (included salary reform) was budgeted at VND199,150 billion (included the adjustment on salary reform of minimum salary at VND450,000 per month); the estimate reached VND206,000 billion or 3.4% (6,850 billion) higher than as planned or 26.7% higher over FY2006; ensuring the expenditure assignments as planned such as education 20% in the total, science and techonology 2%, environmental protection over 1%, and increasing in spending to afford new tasks or unpredictable spending such as recovering ravages by natural disasters (floods, draughts, etc) or prevention of diseases in domestic animals, avians, etc.

In FY2007, many spending norms and reforms of financial mangement in spending units continued to be accomplished, and initial achievements have been made. Besides, implementing financial mechanisms such as autonomy in finance, flexibility in personnel management and administrative block grantings in state bodies under the Decree 130/2005/ND-CP dated October 17,2005; mechanism on autonomy in finance, flexibility in personnel management and block grantings in state-founded administrative units under the Decree 43/2006/ND-CP dated April 25, 2006 and Decree 115/2005 dated September 05, 2005; policies on promoting socialization, luring all economic sectors in providing public services under the Decree 53/2006 dated May 25, 2006, etc, have been strengthened, shifting to new developments in operation and financial management. Tasks of inspecting economicality practical, anti-waste in using the state budgets and public assets has also been enhanced, contributing the enforcement of financial disciplines so as to improve the efficiency of budget spending. 

3. State budget balance

The 2007 budget deficit approved by the National Assembly was VND56,500 billion (4.95% of GDP by Vietnamese standards or 1.7% of GDP by GFS calculations), the estimate of deficit went as planned, which was ensured by borrowings internally and externally.  

Followed by the Resolution of the National Assembly in the 2007 budget execution, amount of VND9,080 billion (VND7,000 billion by central budget, VND2,080 by local budget) would be brought forward to FY2008 for salary reform. By December 31.2007 the governmental outstanding debts (including debts from government bonds) accounted for 35.9% of GDP, the national external outstanding debts 30.4% of GDP, which remained at secure level of the national finance and of the stablilization of macro economic indicators.

4. Tasks of controlling market prices, activities of stock market in 2007

(1) Tasks of controlling market prices

To implement the roadmap to regulate prices of certain commoditites, which remained controlling by the governement (such as gasolines, electricity, etc) close to the market values, since the beginning of FY2007 the government has regulated the retailing saleprices of electricity to households (upto 7.6%), of coal (upto 20%) and electricity (upto 10%) to manufacturers of paper, fertilizer, cement; and Petro trading enterprises has been given power in determining the retail price of gasoline adaptive to the market mechanism since May 1st,2007.

In the execution, the Government focused on tasks of controlling the prices, using the right financial and monetary instruments to reduce input-costs of the economy, controlling the money supplies in circulation, preventing speculations to raise the prices, etc so as to keep the Consumer Price Index below the GDP growth rate as the Resolution of the National Assembly; of which, key measures taken by were : Pushing up the progress in disbursement of capital expenditures, issuing the bonds and T-bills to mobilize unemployment monies in residents, timely allocating budgets to purchase Vaccination and to prevent diseases (preventive injection, destruction of domestic animals, etc), promtly tax-cutting in 18 groups of imports (beef, pig meat, eggs, raw milk, milk, cooking oil, animal foods, etc), organizing the inspections of price-formed factors of indispensable goods (gas, steel and its un-finished products, etc). Therefore, in the circumstance of economic development, the purchasing power with affordability of all people-classes has increased, and other price pushing-factors (e.g natural disasters, diseases, global  market prices), the 2007 CPI has fulfilled the plan, lower than GDP growth rate.

 (2) Performance of the securities market

 By 31/12/2007, total value capitalized of listing stocks in the stock exchanges was estimated at VND493 trillion or over USD30 billion or 43% of GDP. Size of stock market has grown rapidly due to the rise in the trading stock amount (8 times), size of listing companies and prices of quoted stocks also increased two times. Beside stocks, there have 500 sorts of government bonds listed, the municipal bonds and banks bonds, with total value of VND81,600 billion or 8% of GDP.

During first months of 2007, developments of the securities market faced "heat" growth (the VN-index grew rapid). Putting in that situation, the government has directed and introduced solutions to control (introduce the ceiling credit limits to invest in stocks, listing stocks is obligated to be deposited at Centers for deposit of stocks, etc). Thus, the securities market grows stable, ensuring the transparency, security, and efficiency of the market.

In summary, in 2007 the tasks of economic development and fiscal performance have been fulfilled with the budget deficit below 5% of GDP(or 1.7% of GDP by GFS calculations). Revenues ensure the recurrent expenditures, salary reforms, and oil subsidies, capital investment and debts repayments. Operating revenues and brought forward revenues from 2006 were to be used to increase budgets for investment (VND2,050 billion), to transfer to the local financial reserve funds (VND100 billion), and VND9,080 billion is brought to FY2008 for salary reform. Task of managing prices ensures was adaptive to the roadmap to drawn up to key goods and services; the performance of the securities was under control, ensuring the transparent and sustainable development of the market.