Vietnam’s economy has recovered but some challenges, such as trade deficit, high inflation and low budget, remain, Deputy Prime Minister Nguyen Sinh Hung said at a Monday meeting.

Hung asked relevant ministries to work out their own plans to boost exports and control imports to reduce trade deficit.

The deputy PM also asked ministries to ensure the sufficient supply of essential goods for the people at reasonable prices, and to ensure food safety and hygiene in preparations for the upcoming Tet or Lunar New Year holiday.

Minister of Planning and Investment Vo Hong Phuc said that most sectors and industries recorded high growth rates in January compared with the same period last year.

The industrial sector posted the highest growth as its production value rose by 28.4 percent year on year, of which the non-state enterprises saw a 31.1 percent increase.

In January, Vietnam welcomed 416,000 foreign tourists, up 10.6 percent against December 2009 and up 20.4 percent from the same period last year, the meeting heard.

The total number of new telephone subscription reached 4.86 million in January, a year on year rise of 145.3 percent, of which 4.3 million were mobile phone subscription.

According to the report, as many as 5,800 businesses were set up in January, a 25 percent rise year-on-year.

Foreign-invested enterprises disbursed a total of US$400 million, a 33.3 percent climb from the same period in 2009, while the country’s export turnover surged at 28.1 percent year on year to reach $4.9 billion.

Meanwhile, the consumer price index (CPI) rose by 1.36 percent year on year, and a trade deficit of $1.3 billion, equivalent to 26.5 percent of the total export value, was recorded.