The country is striving to keep inflation at about 12-13 percent in 2011, to register an economic growth of 6 percent and trade deficit at 16 percent, Prime Minister Nguyen Tan Dung said at the regular Cabinet meeting in Hanoi on April 28-29.

PM Dung reviewed socio-economic development in April and the first four months of the year, noting that the implementation of Resolution 11 took place synchronously and drastically in ministries, localities, companies with the aims of curbing inflation, stabilising the macro-economy and ensuring social security.

The country obtained initial positive results after only two months of implementing the Resolution, he said, adding that monetary and foreign exchange rate issues were tightly kept under control, mitigating the impacts of dollarisation in the economy and ensuring credit growth. Budget collection increased and overspending was reduced during the reviewed period.

However, price hikes challenged the Government’s management and operation. The PM instructed authorities to take measures to curb inflation and keep an eye on bank interest, trade deficit, social security, and traffic accidents.

Regarding the Government’s operation, PM Dung requested ministries and agencies to closely watch and forecast socio-economic development in the country and globally, especially prices of petroleum, materials and food, in order to implement appropriate and timely measures.

He agreed with proposals of ministries and agencies on the management of petroleum prices in line with market prices and ensuring transparency, along with publicity and close control to prevent speculation.

He also asked the Ministry of Planning and Investment to review projects and to prioritise capital to projects which are under construction and able to be completed this year, and to ensure capital for production.

According to the MPI’s report, the consumer price index soared 3.32 percent in April against the previous month. Export turnover was estimated at 7.3 billion USD in April, and the trade deficit was 1.4 billion USD. Forty of 63 provinces and cities nationwide implemented Resolution 11, cutting down 96.8 trillion VND or about 10 percent of the total social investment in 2011.
Apart from discussing reasons for soaring prices, implementation of solutions on price management, inflation control, macro-economic stability and social security, the Cabinet dealt with the preparations for the upcoming elections of the National Assembly and People’s Council, gave opinions on the action plan to carry out the 10-year socio-economic development strategy for 2011-2020 and orientation and tasks for the five-year national development./.