>> Official: Investment to savings ratio major cause of inflation
>> Government stands firm on curbing inflation
Over 90% of National Assembly deputies voted for the country’s socioeconomic development plan for 2012 that targets an inflation rate of less than 10%.
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| The country expects that its economy will expand by between 6% and 6.5% next year. |
Some delegates however, still expressed doubts about the feasibility of the plan as the NA’s Economic Committee recently forecast the country’s inflation increasing by 18.98% for the year over 2010’s figure.
According to the NA’s Standing Committee, it would be feasible for the country to lower its inflation rate to less than 10% next year as a result of tightened control over public investment and public spending, credit growth, stabilised goods prices, and a balance between supply and demand.
The NA’s Economic Committee stated that the country’s effort to tame inflation could be fostered by the world market that may experience fewer commodity price fluctuations next year. Policies for a stabilised foreign exchange rate would facilitate curbing inflation.
Prices of domestic goods may not increase strongly in 2012 if supply and demand are balanced, public investment and public spending are strictly managed and the credit growth rate remains three times lower than the expected GDP growth rate, the committee noted.
Under the recently approved plan, the country expects that its economy will expand by between 6% and 6.5% next year.
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| Inflation has cooled gradually in recent months |
Export revenues are expected to increase by 13% during the year while trade deficit will be lowered to between 11%-12% of total export value.
Budget overspending will be kept under 4.8 percent of GDP and total investment will represent 33.5% of GDP next year.
The nation targets creating jobs for around 1.6 million people and reducing the poverty rate by 2%.
At the meeting, deputies also agreed that funds raised through Government bonds for the 2011-2015 period should total a maximum of VND225 trillion (USD10.7 billion).
The majority of deputies voted for the National Target Programme for 2011-2015 with total capital of VND276.372 trillion (USD12.72 billion).
