Prime Minister Nguyen Tan Dung has directed the State Bank to grantnegotiable-interest loans to highly profitable business projects and give localbanks more authority in setting interest rates.
The guidance wasdelivered during the government’s regular working session on the socio-economicsituation in March and the whole first quarter this year, from March 30 to April1. It is expected to lower lending costs, thus boosting productionactivities.
It was prompted by the fact that enterprises are havingdifficulties mobilising capital for investment and production as credit loansare now offered by banks at increasing higher rates.
During the three-daygathering, government officials discussed and gave opinions on a draftresolution on measures to ensure macro-economic stability, avoid thereoccurrence of high inflation and attain a 6.5 percent economic growth for2010.
The cabinet members suggested that the government step up measuresto contain inflation and keep a closer eye on the latest developments ofdemand-supply relations to adopt the appropriate measure of readjustment tostabilise the local market.
They also recommended that the governmentmaintain a flexible but cautious monetary policy as it has done so far this yearto ensure growth and curb inflation.
They agreed that thanks to thesynchronous implementation of various financial, monetary andexport-encouragement measures, Vietnam ’s economy is continuing its pace ofrecovery.
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 andservices, 6.64 percent.
The cabinet members said that despite theseachievements, the economy still faces many challenges, including difficultagricultural production due to drought and insects. In addition, consumer priceindex in the first three months of the year climbed up by 4.12 percent andexports declined by 1.6 percent while imports rocketed by 37.6percent.
With an aim of boosting exports to reduce the current tradedeficit, PM Dung gave specific guidance to every single ministry and agency onhow to control prices, investment and public spending, to create favourableconditions for exports.
He also ordered the cabinet members to promoteconsumers’ preferences for locally produced goods, develop supporting industriesand improve the effectiveness of official development assistancedisbursement.
During the meeting, the participants also gave opinions onthe social welfare strategy and the social welfare project for rural areasduring the 2011-2020 period./.
The guidance wasdelivered during the government’s regular working session on the socio-economicsituation in March and the whole first quarter this year, from March 30 to April1. It is expected to lower lending costs, thus boosting productionactivities.
It was prompted by the fact that enterprises are havingdifficulties mobilising capital for investment and production as credit loansare now offered by banks at increasing higher rates.
During the three-daygathering, government officials discussed and gave opinions on a draftresolution on measures to ensure macro-economic stability, avoid thereoccurrence of high inflation and attain a 6.5 percent economic growth for2010.
The cabinet members suggested that the government step up measuresto contain inflation and keep a closer eye on the latest developments ofdemand-supply relations to adopt the appropriate measure of readjustment tostabilise the local market.
They also recommended that the governmentmaintain a flexible but cautious monetary policy as it has done so far this yearto ensure growth and curb inflation.
They agreed that thanks to thesynchronous implementation of various financial, monetary andexport-encouragement measures, Vietnam ’s economy is continuing its pace ofrecovery.
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 andservices, 6.64 percent.
The cabinet members said that despite theseachievements, the economy still faces many challenges, including difficultagricultural production due to drought and insects. In addition, consumer priceindex in the first three months of the year climbed up by 4.12 percent andexports declined by 1.6 percent while imports rocketed by 37.6percent.
With an aim of boosting exports to reduce the current tradedeficit, PM Dung gave specific guidance to every single ministry and agency onhow to control prices, investment and public spending, to create favourableconditions for exports.
He also ordered the cabinet members to promoteconsumers’ preferences for locally produced goods, develop supporting industriesand improve the effectiveness of official development assistancedisbursement.
During the meeting, the participants also gave opinions onthe social welfare strategy and the social welfare project for rural areasduring the 2011-2020 period./.
