PM applauds VN’s initial progress

Viet Nam has achieved some initial success in stabilising the exchange rate, controlling the gold market and increasing foreign reserves and exports to save nearly VND3.9 trillion (US$191 million) in funds that will be earmarked for social welfare.

Prime Minister Nguyen Tan Dung noted the successes yesterday at a monthly meeting of the Government that saw participants discuss the national socio-economic situation after three months of implementing Government Resolution 11.

Dung asked ministries, sectors and localities to continue to implement measures to curb inflation, and strive to reduce imports by 16 per cent this year to ensure a reasonable growth rate.

Chairman of the Government Office Nguyen Xuan Phuc said that the resolution had brought effective results to monetary policies.

Specifically, foreign reserves increased by more than US$1.2 billion; nearly VND4 trillion ($196 million) was saved from public investment production and the Gross Domestic Product (GDP) increased by 5.6 per cent this year.

Reports at the meeting showed that ministries, sectors, localities and State corporations cut investment capital by VND80.5 billion ($3.9 million) since early this year, accounting for 9 per cent of the total social investment capital in 2011.

About 910 projects run by economic groups and State corporations with total investment capital of VND39.2 trillion ($1.9 billion) were delayed or extended, accounting for 10.7 per cent of this year’s development and investment capital.

The foreign exchange market has improved positively, a development reflected by the large amount of foreign currencies that banks purchased from individuals and enterprises and the gradual decrease of the exchange rate. Total export turnover reached $34.7 billion in the past five months, an increase of 32.8 per cent compared to the same period last year and three times the amount compared to the Government target.

At the meeting, the Prime Minister asked ministries, sectors and localities to continue implementing the resolution to control inflation at 15 per cent and ensure a stable growth rate of 6 per cent.

State banks were asked to conduct flexible monetary policies to ensure the rate of credit growth stayed below 20 per cent while giving priority to credit capital services for economic development.

Dung also called for the real estate market to be controlled tightly and urged discussions on ways to restructure the banking system.

He required relevant authorities to control prices, avoid speculation and curb hikes in prices for gasoline, electricity and coal, which must be controlled to help work on lowering the inflation rate.

Dung also said public investment should be reduce further reduced so that funds that are saved can be used instead for urgent projects on social welfare, national security and natural disaster prevention.

At the meeting, many members discussed emerging challenges such as high inflation, the large trade gap between exports and imports and ways to improve living standards for poor people living in disadvantaged areas. — VNS

Tags: Vietnam economic, Vietnam economic growth, Vietnam economy, Vietnam economy 2011