The consumer price index (CPI) has dropped over the past six consecutive months. This year, the country’s CPI is currently estimated at 18.12%, fluffing the set target, the PM said, adding that, the budget deficit has also been reduced, accounting for just 4.9% of GDP. He also said that exchange rates have been stable and interest rates have been on the decline.
Prime Minister Nguyen Tan Dung
According to the government leader, the country aims to keep credit growth at 15-17% and reduce budget deficit to below 4.8% of GDP in 2012. In the year, GDP growth is aimed at 6-6.5%.
The PM, however, also noted that the national marco-economic situation remains unstable with the possible risk of returning high inflation. Many companies are facing difficulties in operations due to the Government’s tight monetary policies, which prioritise inflation control. Dung also warned that changes in the global economic situation could adversely affect Vietnam’s economic development.
Next year, the country will continue to focus on economic stability and curbing inflation, according to the PM. “We cannot imply pump money into the economy to boost growth after good signs of CPI fall for the past six months."
Deputy Prime Minister Vu Van Ninh said this year, Vietnam will also study wage reform and prioritise creating a legal framework to tighten control over foreign currency and gold market.
Drastic actions against loss-making groups
The Government has instructed ministries and agencies to implement the economic structure programme.
In terms of banking restructure, the Government has assigned the State Bank of Vietnam to supervise the capital of banks to ensure their liquidity and develop non-cash payment services.
The Ministry of Finance has been asked to cooperate with ministries and agencies to build up and enforce restructuring policy for state-owned corporations and groups.
The ministry will have to tighten control over operations of state-owned corporations and groups, particularly those in the areas of petroleum, coal and electricity in order to ensure financial transparency.
The use of loans by these enterprises will also be closely supervised to avoid bankruptcies. The Government will dissolve state-owned companies that incur big losses.