Prime Minister Nguyen Tan Dung has directed the State Bank to grant negotiable-interest loans to highly profitable business projects and give local banks more authority in setting interest rates.
The guidance was delivered during the government’s regular working session on the socio-economic situation in March and the whole first quarter this year, from March 30 to April 1. It is expected to lower lending costs, thus boosting production activities.
It was prompted by the fact that enterprises are having difficulties mobilising capital for investment and production as credit loans are now offered by banks at increasing higher rates.
During the three-day gathering, government officials discussed and gave opinions on a draft resolution on measures to ensure macro-economic stability, avoid the reoccurrence of high inflation and attain a 6.5 percent economic growth for 2010.
The cabinet members suggested that the government step up measures to contain inflation and keep a closer eye on the latest developments of demand-supply relations to adopt the appropriate measure of readjustment to stabilise the local market.
They also recommended that the government maintain a flexible but cautious monetary policy as it has done so far this year to ensure growth and curb inflation.
They agreed that thanks to the synchronous implementation of various financial, monetary and export-encouragement measures, Vietnam ’s economy is continuing its pace of recovery.
The economy expanded by 5.83 percent in the first quarter, which is much higher than the 3.14 percent growth in the same period last year. Industrial production rose by 13.6 percent, construction by 17.4 percent and services, 6.64 percent.
The cabinet members said that despite these achievements, the economy still faces many challenges, including difficult agricultural production due to drought and insects. In addition, consumer price index in the first three months of the year climbed up by 4.12 percent and exports declined by 1.6 percent while imports rocketed by 37.6 percent.
With an aim of boosting exports to reduce the current trade deficit, PM Dung gave specific guidance to every single ministry and agency on how to control prices, investment and public spending, to create favourable conditions for exports.
He also ordered the cabinet members to promote consumers’ preferences for locally produced goods, develop supporting industries and improve the effectiveness of official development assistance disbursement.
During the meeting, the participants also gave opinions on the social welfare strategy and the social welfare project for rural areas during the 2011-2020 period./.
The guidance was delivered during the government’s regular working session on the socio-economic situation in March and the whole first quarter this year, from March 30 to April 1. It is expected to lower lending costs, thus boosting production activities.
It was prompted by the fact that enterprises are having difficulties mobilising capital for investment and production as credit loans are now offered by banks at increasing higher rates.
During the three-day gathering, government officials discussed and gave opinions on a draft resolution on measures to ensure macro-economic stability, avoid the reoccurrence of high inflation and attain a 6.5 percent economic growth for 2010.
The cabinet members suggested that the government step up measures to contain inflation and keep a closer eye on the latest developments of demand-supply relations to adopt the appropriate measure of readjustment to stabilise the local market.
They also recommended that the government maintain a flexible but cautious monetary policy as it has done so far this year to ensure growth and curb inflation.
They agreed that thanks to the synchronous implementation of various financial, monetary and export-encouragement measures, Vietnam ’s economy is continuing its pace of recovery.
The economy expanded by 5.83 percent in the first quarter, which is much higher than the 3.14 percent growth in the same period last year. Industrial production rose by 13.6 percent, construction by 17.4 percent and services, 6.64 percent.
The cabinet members said that despite these achievements, the economy still faces many challenges, including difficult agricultural production due to drought and insects. In addition, consumer price index in the first three months of the year climbed up by 4.12 percent and exports declined by 1.6 percent while imports rocketed by 37.6 percent.
With an aim of boosting exports to reduce the current trade deficit, PM Dung gave specific guidance to every single ministry and agency on how to control prices, investment and public spending, to create favourable conditions for exports.
He also ordered the cabinet members to promote consumers’ preferences for locally produced goods, develop supporting industries and improve the effectiveness of official development assistance disbursement.
During the meeting, the participants also gave opinions on the social welfare strategy and the social welfare project for rural areas during the 2011-2020 period./.
