Country faces tough task in curbing annual inflation rate
HA NOI (VNS)— The Prime Minister has said that "all-out efforts" will be required if Viet Nam is to keep inflation at 8 per cent for 2012.
Speaking at the Cabinet's monthly regular meeting in Ha Noi yesterday, Nguyen Tan Dung added that targets for curbing inflation and stablising the macro economy needed to be implemented drastically and synchronously.
Despite positive economic results for the first 10 months of the year, the cabinet members noted that the country's socio-economic situation was still facing difficulties and challenges, with the macro economy remaining unstable.
At the meeting to review the country's socio-economic performance in October and the past ten months, cabinet members suggested further deployment of measures to manage inflation, ensure stable growth for the macro economy and remove obstacles for enterprises.
PM Dung said: "The State Bank of Viet Nam is determined to restructure its banking system and will be open and transparent in doing the work. Besides, it will continue taking measures to deal with bad debts effectively in a drastic and strict way, together with completing a master plan on bad debt settlement as soon as possible."
Prime Minister Dung and his cabinet members agreed that the socio-economic situation in first ten months of the year has continued to see positive changes and been being on track to achieve the set targets.
The consumer price index in October increased by 0.85 percent against September, up 6.02 percent compared to December last year and 7 percent over the same period last year, but the increase was lower than growth rates of previous months.
Dung asked ministries, branches and agencies to keep a close watch on the situation and try their best to fulfill the set socio-economic targets for 2012, thus creating a firm premise for 2013 and the coming years.
He asserted that the State Bank would keep a close eye on the gold market and implement related policies in a clear and transparent manner.
He also instructed the ministries, sectors and localities to speed up capital disbursement for projects using State budget, Government's bonds and investment from national target programmes.
The ministries and sectors must continue solving problems and creating favourable conditions to spur production and business, especially in the fields that the country has advantages like agriculture, tourism and services, the PM added.
Speaking to the press after the meeting, the chief of the Government Office Vu Duc Dam said it had instructed all relevant agencies to stabilise goods prices in a bid to counter inflation increases that can occur towards the end of the year.
On the subject of managing state enterprises, Dam said soon there would only be 10 state-owned corporations under the responsibility of the Prime Minister and the rest would be allocated to respective ministers.
He also revealed the Government has established a committee to investigate Electricity of Viet Nam, which has been under fire for investment activities outside its core businesses. "The committee, to be headed by the Minister of Home Affairs, will determine the disciplinary measures for EVN officials and the findings will be made public," he added.
Dam said that given current economic hardships, the Government has continued prioritising the state budget to ensure social protection policies meet the needs of the poor, especially those in rural and disaster areas. — VNS