Viet Nam needs to curb inflation: PM

Prime Minister Nguyen Tan Dung yesterday stressed the need for the country to curb inflation, stabilise the macro-economy and ensure social welfare for the next six months.

He made the statement during an online conference with ministries and localities to discuss implementation of the Government’s major solutions for the rest of this year.

Reports from the ministries and localities revealed socio-economic achievements during the past six months. Foreign exchange and the gold trade were stable, credit growth was under control and there were remaining investments for poverty eradication.

Of particular note, GDP increased by 5.57 per cent and State budget revenues reached VND46.7 trillion (US$2.2 billion).

Minister of Industry and Trade Vu Huy Hoang said that Viet Nam had fully met the basic needs, including electricity and essential commodities, to serve domestic production and export.

Rising prices were under control as proven by the unchanged price of goods this month, he said.

During the period, about 56,200 tonnes of rice were given to those in need throughout the country.

More than VND80.5 trillion ($3.9 billion) in investment capital, which accounted for 9 per cent of this year’s total social investment capital, has been reviewed and reduced.

However, Minister of Finance Vu Van Ninh said the inflation pressure still remained a significant burden, especially the remarkable increase in the prices for gasoline, electricity and coal.

This month’s consumer price index, although reported as the lowest increase since the beginning of this year, soared by 1.09 per cent compared to the previous month.

PM Dung required all ministries, sectors and localities to focus on curbing inflation to between 15 and 17 per cent, controlling the outstanding credit growth to under 20 per cent, the deficit by less than 16 per cent and overspending by less than 5 per cent of GDP.

He noted that priority must be given to developing a comprehensive monetary policy and granting more credit to agricultural production and export.

The PM also required tight controls on foreign currency exchange and the gold trade to prevent the exchange rate from fluctuating. Ministries, sectors and localities were asked to closely manage real estate markets and to strictly inspect banks that opted to invest in this market.

With an aim of tightening fiscal policy, Dung demanded a 10 per cent reduction in public investment and strict control on investment by State enterprises.

To support small and medium enterprises, Dung said the Government had delayed or reduced VND13 trillion ($637 million) in taxes and raised the minimum wage from VND840,000 ($40) to VND1.4 million ($68).

The Government leader urged sectors to avoid speculation, implement administrative reform and fight against corruption while ensuring social security and national sovereignty. — VNS

Tags: Vietnam 2011 inflation, Vietnam economic, Vietnam economy, Vietnam inflation