The Vietnam Government will take drastic measures to rectify the direction of the economy, by reducing public investment outlays totalling over 80 trillion VND, equal to 9 percent of the total social investment in 2011.

The action is part of measures to curb inflation and stabilise the macro-economy as proposed in Government Resolution No 11/ NQ-CP, which is being carried out nationwide by ministries, sectors and local authorities.

The Ministry of Planning and Investment (MoIP) revealed, after three months of implementing the Resolution, relevant ministries and branches have managed to reduce 5.5 trillion VND of investment from the State budget in 2,048 projects and 2.77 trillion VND in 126 projects funded by Government bonds.

State-owned economic have postponed 907 projects, with total investment capital of 39.2 trillion VND, equal to 10.7 percent of planned development investment capital this year.

In parallel with reducing public investment, ministries, sectors and localities nationwide have cut their regular expenditure by 10 percent or 3.85 trillion VND and will strive to reduce overspending to less than 5 percent of GDP. The savings from regular spendings will be used for social welfare/.