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PM takes action on global crisis
In the face of the global financial crisis, the Prime Minister has asked ministries, sectors and localities to continue to implement a tight but flexible monetary policy and keep a close watch on developments in the global and US financial markets to come up with appropriate solutions.
The Government Office has released the PM’s conclusions on the implementation of measures to minimise the negative impact of the current global financial crisis on the national economy. According to the PM, the crisis has indirectly had a small-scale effect on the country’s financial and monetary market, trade, services and foreign investment attraction.
To fulfil the targets set for 2008, he asked ministries, sectors and localities to effectively implement the Government’s 8 solutions and macro-level management measures aimed at curbing inflation, stabilising the macro economy, ensuring social welfare and achieving a steady economic growth.
He underlined the need to implement a tight and flexible monetary policy to sustain the liquidity of the banking system and the national economy. The State Bank of Vietnam is required to create favourable conditions for commercial banks to mobilise capital for development investment, production and services, while controlling the interest rate, exchange rate and foreign currency reserves in a flexible and effective manner in order to boost production, increase exports and reduce imports.
The PM asked relevant agencies to adjust and cut down on public spending, especially in economic groups and State businesses, reduce the budget deficit and review the list of investment projects proposed by economic groups and State corporations.
One of the crucial tasks of the relevant ministries and sectors is to keep a close watch on fluctuations in the global and US financial markets, evaluate their impact and put forward solutions for submission to the PM.
The State Bank of Vietnam and the Ministry of Finance will instruct commercial banks and economic groups to examine their deposits in foreign banks and financial institutions, as well as their loans, to minimise risks of losses.
They will also examine the investment and business activities of Vietnam-based foreign banks and inform the Ministry of Foreign Affairs of the list and financial commitments of these banks. The Ministry of Foreign Affairs will then instruct representative Vietnamese missions overseas to gather information and analyse the financial risks and possible scenarios of these foreign financial and credit organisations.
According to the PM, the State Bank of Vietnam will instruct commercial banks to closely monitor their loans, especially those invested in high-risk areas such as real estate and securities, to enhance control and prevent risks in these areas. The State bank will evaluate bad debts and safety levels of credit organisations then draw up appropriate prevention plans. It will submit to the Government regulations on mergers and acquisitions as well as those on bankruptcy, laying the foundation for rearranging inefficient commercial banks and credit organisations with the aim of creating a healthy and safe environment for the banking sector.
The Ministry of Finance will instruct the State Securities Commission to closely watch foreign investors’ capital flow and remove obstacles to administrative procedures to attract more investment capital and develop the stock market in a sustainable manner. It will look into the operation of financial organisations and financial investment funds, and revise legal documents governing the establishment and operation of securities, insurance and fund management companies.
The Ministry of Industry and Trade will implement additional measures to boost production and exports, increase trade promotion activities and seek new markets such as Russia, the Middle East, Latin America and Africa alongside traditional markets, while managing the domestic market better.
The Ministry of Planning and Investment and the State Bank of Vietnam will examine the implementation of domestic and foreign investment projects to resolve investor difficulties, with priority given to pouring investment capital into key projects.
The Prime Minister also asked ministries, sectors and media agencies to coordinate closely in disseminating the Government’s policies, and hold direct dialogues with foreign investors and financial organisations to promote market transparency and increase their trust in the Government’s policies.
He assigned Deputy Prime Minister Nguyen Sinh Hung to hold regular meetings with relevant agencies to solve issues that arise and to seek solutions for minimising the negative impact of the current global financial crisis on Vietnam.
VOV
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