Cabinet sets agenda for new year

The cabinet would do its best to stabilise the macro-economy and contain inflation, the last cabinet meeting of the year heard yesterday.

Chaired by Prime Minister Nguyen Tan Dung and his deputies, the two-day meeting was attended by ministers as well as leaders of 63 provinces and central-level cities to discuss the agenda to achieve socio-economic targets set by the National Assembly for next year.

The country achieved almost all the targets set for 2010 against the odds, said deputy Prime Minister Nguyen Sinh Hung, adding that Viet Nam was now an middle-income class country.

The cabinet reviewed measures undertaken to stabilise the macro-economy, contain inflation and achieve a growth rate target of 6.5 per cent during the outgoing year.

Strict Government management since the beginning of the year had helped the country’s economy rebound in most industries,concluded the cabinet.

The country experienced quarter-on-quarter growth, said Minister of Planning and Investment Vo Hong Phuc.

The business environment had fared well, and 84,000 new household businesses came into existence during the year with registered capital of around VND1.3 trillion (US$65 million), the minister noted.

The Finance Ministry adjusted the prices of several essential commodities, including electricity and oil, to gradually match market prices in collaboration with the Ministry of Trade and Industry, according to Finance Minister Vu Van Ninh.

When the market prices rose, the ministries tried to keep prices of essential commodities, which are still regulated by the Government, under control.

Deputy Prime Minister Hung cited the projected low growth of the world economy, huge overspending and high interest rates as obstacles facing the country’s economy next year.

Several ministers also raised persistent problems like trade and budget deficits and poor investment efficiency, among others.

Lower lending rate promised

The State Bank of Viet Nam (SBV) had been flexible and cautious in its monetary management to keep credit growth, interest and exchange rates compatible with macro-economic conditions and objectives, according to its Governor Nguyen Van Giau.

He noted that credit growth had increased by almost 30 per cent which was stable, and that lending interest rate took a downward trend in the first ten months of the year thanks to the Government’s intime monetary policies.

The SBV also took immediate actions to stabilise both the gold and credit markets in the last two months, including importing gold and increasing the prime interest rate by one per cent.

Banks had already reached an agreement about capping their dong deposit interest rates to under 14 per cent a year, he said.

The SBV would continue to monitor the interest market closely and would lower lending rates once the Consumer Price Index goes down.

Regarding concerns that stricter credit control as a result of rising inflation could affect credit growth in the first quarter of next year, Governor Giau assured credit growth had been kept low for the last four months so the capital market for next year would not be affected. — VNS

Tags: Vietnam economic, Vietnam economic growth, Vietnam economy