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Measures to control inflation discussed
Government ministers discussed more measures to control inflation at the three-day monthly Cabinet meeting that ended in Ha Noi on Thursday.
They also sought a close monitoring of supply and demand in the domestic and international markets to ensure the introduction of prompt policies that will stabilise exchange and prevent both speculation and trade fraud.
Prime Minister Nguyen Tan Dung asked the State Bank of Viet Nam to continue with active, flexible monetary management, particularly for credit growth and the liquidity of the banks to control inflation.
This included negotiable interest for efficient businesses.
He also agreed that the banks should make their own decisions and take responsibility for their services in accordance with the government policy.
The Prime Minister instructed the Monetary and Financial Council to meet weekly to ensure monetary policy accorded with Viet Nam's development targets and matched reality.
He ordered all ministries and economic sectors to quickly develop their action plans for total implementation of the national plans and targets.
The meeting revealed that the Government's financial and monetary policies and its programme to encourage exports resulted in first-quarter GDP growth of 5.83 per cent against the 3.14 per cent for the first three months of 2009.
The encouraging figure - gained at a traditionally difficult time of the year - prompted the prime minister to remind Cabinet that their best effort would now be needed if the target of 6.5 per cent economic growth for 2010 was to be achieved.
The figures showed that industrial production jumped 13.6 per cent; construction 17.4 per cent and the value added portion of the service sector 6.64 per cent.
Cabinet members agreed that further difficulties and challenges were ahead, especially in the face of drought, epidemics, a high consumer price index and the balance-of-trade deficit.
The Cabinet members agreed about the importance of mobilising and using resources efficiently to meet socio-economic development targets and to complete policies and mechanism for the development of investment and expansion of production.
Effective communication of accurate information was an imperative, they decided.
" Wrong information could lead to sudden fluctuations in the market," warned Finance Minister Vu Van Ninh.
An example was the price for coal sold to power stations, he said.
An audit of the 2008 State budget was delivered at the meeting.
The Cabinet members also discussed the "Strategy for Social Security from 2011-20" and the proposed "Social Security System for People Living in Rural Areas from 2011-20."
A report dealing with the pilot project for the elimination of district, precinct and ward People's Councils was also discussed.
So too was a report dealing with revised Decree 107 for the implementation of the Residence Law; the draft Civil Servants Law and the draft State Bank of Viet Nam Law.
" The laws must be workable in real life – a transparent legal corridor to promote the country's socio-economic development," the Prime Minister told the meeting.
At a press conference following the cabinet meeting, Deputy Minister of Finance Tran Van Hieu said that late on Thursday, the ministry had asked petrol importers to maintain current domestic oil prices despite fluctuations on the global market. Businesses instead would be permitted to use the fuel price stabilisation fund to compensate for their losses.
The ministry also stipulated that if global prices decreased, the companies had to reduce domestic retail prices. If businesses wanted to raise their prices, they had to make a request to the Government for new guidance.
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