The central bank governor has said that if the trade gap is successfully cut to less than 16% of export revenue, Vietnam’s Balance of Payments this year will have a surplus of up to USD2 billion.

Speaking at the National Assembly in Hanoi on Saturday, Nguyen Van Giau said the BOP was in surplus in 2008, but it swung into deficit, at USD8.8 billion, a year later and fell to USD3.07 billion last year.

“The Government originally aimed for a trade deficit making up 18% of export revenue this year. I and other ministers projected the Balance of Payments would have USD700 million in surplus,” he said. “However, the Prime Minister now wants ministries to curtail the trade deficit at less than 16% of export revenue, hence the BOP surplus of USD2 billion.”

The governor said the State Bank of Vietnam had combined with other agencies to put the unofficial foreign exchange market under control. The U.S. dollar price on the unofficial market has gradually got closer to the official exchange rate.

Banks said they were ready to sell foreign currency to individuals who have legitimate demands, Giau said, suggesting people should use international payment cards rather than cash when traveling abroad.

As for gold management, Giau said, the central bank had proposed the Government issue a decree governing the gold market, especially gold tael trading. The Government’s Resolution 11 mentions a ban on gold tael trading on the unofficial market in the long run.

“Some said banning gold tael trading would affect people’s assets. I do affirm that’s wrong. We will take measures in a way that ensures the legitimate rights of gold owners,” Giau added.

Regarding credit for the corporate sector, businessmen said they had found it more difficult to gain access to bank loans due to monetary tightening. Giau said outstanding loans this year would rise by VND460 trillion, almost equal to last year’s VND470 trillion (USD22.4 billion).

Giau admitted the slow credit increase in the first three months of the year caused difficulties for enterprises but according to an online meeting between the Prime Minister and provincial governments on March 7, no big problem had emerged so far. “However, I’ll notice this matter and attend to it when problems arise.”