Vietnam saves 3.4tr dong in public investment in Q1

Minister and Chair of the government Office Nguyen Xuan Phuc while speaking at the periodical government meeting said that implementing all the measures to control inflation, stabilise macroeconomic situation, ensuring social life in Resolution 11 has brought back more positive achievements.

Specifically, ministries, cities and provinces have started to save public expenditure by 10 percent including energy saving (electricity), not buying expensive means of transport and others to cut public investment by 1,387 projects with 3.4 trillion dong (according to

preliminary statistics of ministries, sectors and localities).

According to Bui Ha, director of Department for National Economy Management under the Ministry of Planning and Investment (MPI), Vietnam is executing capital investment cuts with the measures such as not extending the time of disbursement, no advance planning for 2012 and absolutely reducing the bond government. Particularly, the government of Vietnam will reduce investment credit of the State (through concessional loans for development banks) by about 50 trillion dong.

The measures given by the government are not allocating funds to businesses for new and ineffective investment projects, but the remaining funds will not be collected into the state budget, but allowing the ministries, sectors and localities to use, transfer to another projects that should be completed in 2010 and has given priority to speed up investment.

But under the government’s direction in 2011, investing in social programmes will continue to increase to ensure people’s lives. In addition, the government has the necessary measures to support people’s lives, such as implementation of the roadmap for salary increase from early 2011, adjustment of student loans, subsidies for those who earn 1.9 million dong per month on electricity to support 30,000 dong/household/month and support 250,000dong/poor household (total of 550,000 dong per poor household per year), and others with total financial support for low‐income people up to 3.1 trillion dong.

Vietnam will boost local production and continue deficit reduction, especially luxury items such as expensive mobile phones, cars, alcohol, motorcycles… with technical barriers according to the law.

Prime minister Nguyen Tan Dung made the conclusion on some new measures of monetary policy, gold, dollars, ensure foreign currency for imports (petroleum), accumulation; savings in the whole society, especially saving electricity and other unessential expenses, management of real estate market, stability, the route to ensure market transparency, not for speculation, boost the price management.

Tags: Vietnam public investment