HCM City sticks to growth target despite hardships

HCM CITY — HCM City will not reduce this year's economic growth target from 10 per cent, but instead focus on resolving difficulties faced by businesses and warding off inflation.

"In spite of the existing hardships, the city will not reduce its growth target," city chairman Le Hoang Quan told a meeting held on Thursday to review the socio-economic situation, two months of implementing a Government resolution to help businesses overcome problems.

"We will continue to resolve all difficulties related to production and trading and help businesses stabilise their operations," he said.

Deputy chairwoman Nguyen Thi Hong said the city should fix the difficulties infrastructure projects face, including a shortage of funds, and strengthen the links between banks and businesses.

"The city needs VND20 trillion (US$952.4 million) for infrastructure projects this year, only VND13 trillion is provided."

According to the People's Committee, scrupulous implementation of the Government's Resolution 11 – passed in February, 2011 to combat inflation – to tighten fiscal and monetary policies was effective in curbing inflation, but hit businesses' growth and made it hard for small and medium firms to get bank loans, leading to suspension of business, bankruptcy, even closure.

Liquidating inventory

Vo Van Luan, chief of the People's Committee Office, said this year has been difficult with consumer demand falling steeply.

An official from the Department of Industry and Trade said companies were now sitting on inventories equivalent to 26 per cent of their output.

In order to stimulate demand, the department suggested that the companies take the stocks to traditional and mobile markets, organise market days at industrial parks and export processing zones, and have regular promotions at supermarkets. — VNS