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PM lists urgent tasks to curb inflation

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Prime Minister Nguyen Tan Dung on April 3 made a list of several urgent tasks that ministries and sectors must implement immediately to help curb inflation, stabilise the macro economy and ensure social security.

At its regular monthly meeting chaired by PM Dung, the Government passed Resolution No 77/NQ-CP assessing the country's socio-economic development in the first quarter of 2011 and in March.

Participants agreed that in the remaining months of the year, Vietnam 's economy will continue to face many difficulties and challenges due to the world's slow and unstable economic recovery; the hike in crude oil and essential commodities prices; and the high inflation rates in many countries. All these factors have put pressure on the climbing consumer price index (CPI) in Vietnam .

To achieve the 2011 targets approved by the National Assembly, the Government asked all ministries and localities to strictly implement the recent Politburo conclusion on the country's socio-economic development in 2011 as well as Government resolutions No 02/NQ-CP issued on January 9, 2011 and particularly No 11/NQ – CP issued on February 24, 2011 on major measures to fight against inflation, stabilise the macro economy and ensure social security.

The resolution issued on April 3 is focused on the main areas below:

The State Bank of Vietnam (SBV) must be proactive and flexible in their operations to achieve the 2011 credit growth target of under 20 percent and the money supply at about 15-16 percent.

By the end of April at the latest, the SBV must submit to the PM for approval policies on the elimination of illegal trading of foreign currencies and gold as well as a road map to reduce the dollarisation of the economy

The Government ordered the Ministry of Finance to calculate and clearly state how much money will be saved by cutting current spending by 10 percent. The ministry should come up with specific measures to cap the overspending at below 5 percent.

The Ministry of Planning and Investment must work with relevant agencies to come up with a list of projects which will be implemented in 2011 using funds from the state budget and government bonds in the fields of transport, irrigation, hospitals, school buildings and student accommodations.

Ministries, government agencies, state owned enterprises and groups have been instructed to send their new 2011 budget proposals for the Government to approve in the next monthly meeting.

The Ministry of Industry and Trade must ensure that the imbalance between imports and exports does not rise above 16 percent.

The Ministry of Finance was named the focal point for co-ordinating activities with other Government agencies and local governments in the common goal of curbing inflation and avoiding manipulation.

The Ministry of Construction was named the focal point for the entire nation's endeavour to set order to the real estate market and make it transparent.

PM Dung ordered the Ministry of Finance to come up with a specific policy on the extension of corporate income tax payments to submit to the PM for approval.

The Ministry of Industry and Trade must ensure a good supply of oil and diesel for production and consumption inside the country; impose strict controls on electricity supplies for production and for daily life activities; try to reduce electricity consumption by 10 percent in 2011.

The Ministry of Labour, Invalids and Social Affairs has to work closely with the Ministry of Finance to make sure the PM's decisions to subsidise electricity prices for poor households and the special allowance given to low income wage earners and poor households are implemented promptly. /.
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