Trang Chủ
In the first-half report on socio-economic and state budget situation and the second- half plan on key tasks, measures of 2011, permanent Deputy Prime Minister Nguyễn Sinh Hùng affirmed: thanks to the firm target in curbing inflation, stabilizing macro-economy that has been affirmed as the first priority, in addition to endeavour in implementing simultaneous measures of keeping prices under control, regulating demand-supply and steadying markets, consumer price increases has been kept on hold and toward waning trend (3.32% in April, 2.21% in May, and 1.09% in June, respectively). The first six-month economic growth rate (GDP) is estimated at 5.57% albeit lower than that of the same period of 2010 and less than the National Assembly-passed annual target. This is a very significant effort given that many difficulties confronting the countries.
Beside such initial achievements, PPM Nguyễn Sinh Hùng pointed out that the socio-economic development in Vietnam is facing huge challenges: inflation started to cool but inflationary pressures remain high. Consumer price index soared by 13.29% in June 2011 against December 2010 (16% year-on-year increase), much higher than the national assembly passed target (of 7% as maximum); interest rates that are still high give further negative affects to business and production. Borrowing interest rates surge on average about 2.9% in comparison with end-2010. There exists a big gap between borrowing and lending rates. This exposes part of business community to certain challenges in credit loans, especially small and medium enterprises (SMEs). Non-performing loan rates (NPLs) of the banking system tend to rise; nonetheless, with strengths of the banking system, security market coming to normalize, such a progress remain modest, without meeting the current needs for socio-economic development...
“Thus, it is necessary to continute implementing steady, drastic measures in supplying concrete guidance to control inflation, stabilize marco-economy, ensure social safety over the coming months in 2011 and for some following years” – with this view, the Government has formulated 8 groups of key measures in guidance, implemention over the last 6-month period of 2011, with special focus on subject matters of: monetary and fiscal policies; trade, price, market policies; business and production promotion, export stimulus, trade deficit control, energy saving; social safety guarantee; eduction, health, culture, social affairs; defence, security, external affairs, and social order warranty; ideology, information, communication works. The Government continues its commitments:
To implement stricker and more prudent monetary policy; appropriate credit growth by month, quarter in a line with market conditions to particularly support enterprises in season of production, business of even higher capital required; flexible and effective use of monetary policy tools to bring down inflationary pressure, to give doward pressures to rates at proper level for supports of business & production, guarantees of credit liquidity for the whole banking system and the entire economy.
To consolidate inspection, monitoring, controlling of NPLs and credit quality of credit institutions; to control to future downward trend of level and rate of credit loans in sectors of non-production, real estate, security; to prioritize loans to production, export, agriculture, rural, manufacturing of essential-to-life products, SMEs, supplementary industries; to carry out inspection, monitoring of financial prudence ensuring regulations compliance of credit institutions, investment funds, financial companies; to identify criteria and to classify credit institutions in order for prompt supervision and resolution measures.
To continue implementing flexible exchange rates to normalize market and increase foreign reserve; to consolidate monitoring, supervision of regulation compliance of foreign currencies buy-sale, gold trading.
To curb inflation, normalize value of currecy in framework of medium and longer monetary policy, giving premise to inflation control and making contribution to stabilizing macro-economic development.
Consequently, the National Assembly’s Committee on Economy shares the view of agreement with the Government’s the last 6-month measures plan in their verifing report addressed before the National Assembly Session. The Committee on Economy of the National Assembly draws the Government’s attention to i) implementing a flexible policy direction that both ensures right guidance, right time, right size, aiming at limiting minimum side effects on investment, production, and business; ii) regulating credit growth and making level allocation of budget-based investment capital in such a manner that end-year pressure of high money supply on cash-commodity balance shall be waning, contributing to cool re-heating inflation (the first 6-month increase in total credit loans of 7% leaves 13% for the last 6-month); iii) attaching solutions on control of markets, supervison and control of credit institution’s operations to normalize and gradually lessen interest rates, contributing to support enterprises, in addition to flexible monetary policy direction; iv) continuing keeping foreign currency and gold markets under management in a trend that business activities are well-organized, and attracting social resources; v) regulating foreign exchange rate toward stability, flexibility without hike that hit hard export in a line with aggressively regulating revolved capital between foreign currencies and VND to avoid speculation or over-increased demand that brings further rate pressures in the future.
