All ministries, sectors and localities have promulgated and deployed their own action plans to curbing inflation under the requirement of the Government’s Resolution No. 11/NQ-CP dated on Feb. 24, 2011.
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The video-conferencebetween the Government and localitieson March 18
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The information was released at the video-conference held between the Government and localities on March 18.
The State Bank of Vietnam (SBV) promulgated documents on detailed implementation of monetary, credit, and interest rate measures to keep the country’s credit growth under 20% this year.
The Ministry of Finance already promulgated detailed documents to increase the State budget collection by 7-8% compared with the preset-target and reduce budget overspending to less than 5% this year.
The Ministry of Planning and Investment issued documents detailing the implementation of the solutions for development investment. Accordingly, State capital will not be allocated in advance for 2012 and disbursement schedule for development investment in 2011 will not be pro-longed.
The Ministry of Labor, Invalids and Social Affairs coordinated with ministries, sectors and localities to deploy promulgated policies on social welfare, particularly for poor households.
At the conference, Minister of Planning and Investment Vo Hong Phuc revealed that international credit institutions like IMF, WB, ADB and many countries in the world spoke highly of and voiced support for the Government’s solutions in the Resolution No. 11.
One of the significant outcomes is that the interest rates have been brought down since the introduction of the Resolution. The mobilizing rate was lowered to 13-14% from 16-17%.
Trading of foreign currency has been abolished on the free market and rapidly increased on the official market (commercial banks).
However, there are some shortcomings during the implementation of the Resolution. Some local leaders suggested that the SBV should take more measures to strictly punish banks that violate regulations on interest rates and promulgate roadmap for interest rate reduction.
Chairman of the Hai Phong Municipal People’s Committee Duong Anh Dien proposed that the State should continue assisting agricultural production and export of agricultural products.
Sharing the same view, Chairman of the Ha Tinh People’s Committee Vu Kim Cu suggested that the State should enact specific policies on preferential interest rates for small and medium agricultural exporters.
Addressing the conference, PM Nguyen Tan Dung hailed efforts made by ministries, sectors and localities to effectively carry out the Resolution No. 11.
He requested them to continue fruitfully realizing the Resolution, putting forwards suitable measures for enhancing local socio-economic development, maintaining the production in the trend of focusing on productivity, quality and efficiency.
Regarding inflation curbing, the Government chief pointed out that ministries, sectors and localities must quickly review the public investment to ensure its high efficiency; impose strict control over prices, exchange rate, foreign currency, gold market, and interest rates.
All meetings between ministries and localities must be conducted online with the aim to reduce the cost, PM Dung ordered.
The prices of energy will be adjusted on the basis of market rules, the Government chief said, adding that localities should focus on removing barriers against agricultural production.
PM Dung ordered his inferiors to pay special attention to people’s life, making sure that no citizen is hungry or unlettered./.