The Government held a periodical session on 9/2012

On 27/9, the Government held a periodical session presided over by Prime Minister Nguyen Tan Dung

On discussing the social-economic situation, government members commented that: GDP growth rate was estimated at 5.35%, which was lower than the same period last year, however, this growth rate was the result of significant efforts in the context of inflation control and macro-economic stabilization. GDP growth rate for the first nine months was on a trend which was getting higher every quarter (quarter I GDP increased by 4%, quarter II by 4.66%, quarter II by 5.35% as estimated). Generally, GDP for the first nine months of the year was estimated to increase by 4.73%.

Credit and monetary policies are put under control effectively, flexibly, harmoniously combined with the fiscal policy, contributing to inflation control and macro-economic stability.

Lending rate was decreased rapidly by 5-8%/year in total, which was appropriate with the inflation and macro-economic situation and monetary market. Credit structure continued to witness positive changes, focusing on priority fields; the proportion of outstanding loan of discouraged fields was decreased gradually.

Generally speaking, the total amount of export turnover increased by 18.9% compared to the same period last year; the total amount of import increased by 6.6% compared to the same period last year. Export surplus for the first nine months accounted for 0.04% of the total export turnover. Hence, export has still maintained the growth rate whereas import decreased sharply, which leaded to export surplus for the first nine months of the year.

This is an encouraging result in the context of global and domestic economies are dealing with lost of difficulties and decreases in import demand in many markets. The decrease in the import growth rate and export surplus also contributes to foreign currency balance, exchange rate stabilization and increase in foreign exchange reserves of State.

It was for the measures to resolve problems and develop production were strongly put into practice, industrial production has changed positively month after month, inventory tended to decrease. Index of Industrial Production (IIP) for the first nine months increased about 4,8% compared with the same period in 2011. Agricultural, forestry and aquacultural production continues to develop gradually. Production value of the whole industry in September was estimated to increase by 3,7%.

Besides, levels and sectors continued to positively deploy and implement the social security and welfare policies. As for labour and imployment in particular, 1,130 people were provided with suitable jobs for the first nine months of, reaching 70.6% of the set target this year, including labour export of about 60 thousands of people, reaching 66.7% of the target of the year.

However, government members also stated that the macro-economical situation was still facing many difficulties and challenges, especially the unstable macro-economics, CPI tended to increase again, economical development increased more slowly than expected; bad debt at the bank were slowly resolved; monetary and financial market was too complicated; business and production slowly recovered …

                                                                                                                           The whole scene of periodical session of the Government in 9/2012

Inflation and macro-economic stability prioritized to put under control

On analyzing and forecasting the situation of nation and the world economy, many Government members stated that the world situation is still complex and facing many risks. In the nation economy, the increase in CPI for the last few months may be higher than the first half of the year because of the impacts of the nation and the world situation.

Through the affirmation above, the Minister of Industry and Trade Vu Huy Hoang, General Inspector of the Government Huynh Phong Tranh and some Government members expressed their opinions to control the inflation actively, apply the methods to control the inflation, stabilize the macro-economics.

It should be necessary to focus on thoroughly resolving bad debt in commercial bank system; concentrate on the changes of the financial and monetary market to make out suitable solutions right away, ensure the liquidity for the credit organizations, ensure the safety for the whole bank system.

Mentioning heath care service fees, many Government members proposed : As for the localities that had not published the new heath care service fees, they were proposed to consider prolonging the time of measuring the procedure and time to increase the fees in order to reduce the worries of citizens and contribute to achieving the target of inflation control.

On stating that the business and production were still facing many difficulties, the Deputy Prime Minister Nguyen Xuan Phuc and Deputy Prime Minister Hoang Trung Hai emphasized that it was necessary to enhance quality of trade promotion and investment; look for new and enlarge the market, promote to production and export activities, especially the products made from domestic materials; implement the solutions to effectively maintain the growth rate of main export products.

Problems should continue to be resolved, production of advantegous fields and items should be facilitated; it is also to increase the effectiveness of business and production, the competitive ability of products and services; furthermore, focus on agriculture and rural areas, consider methods to support purchasing argricultural and aquacultural products to ensure the benefits of the producers.

Concerned about price issues, Deputy Prime Minister clearly stated that the adjustment of many services and products’ prices under the market mechanism was necessary, but before carrying out, time and practical impact of the economics and society after that should be taken into consideration.

Besides, some Government members suggested promoting market management, strictly handling the speculation or keeping products which creates the virtual price fever; controlling quality of the import products and preventing products frauds, counterfeit products, low quality products at the end of the year, especially the coming Tet holiday.

 

​Prime Minister Nguyen Tan Dung emphasized to keep inflation under 2-digit number

 Not letting iflation reach 2-digit number

On concluding at the conference, Prime Minister Nguyen Tan Dung emphasized, besides the achievements, the socio-economic situation also witnessed many limitations such as slow development, unstable macroeconomics, and significant inventory. The rest tasks for the last few months come together with lots of pressure due to slow growth rate and unpredictable changes of world economy, in addition to intrinsic difficulties.

Through the analysis above, Prime Minister Nguyen Tan Dung suggested the Ministries, and sectors strengthen the activities of forecasting to propose the policies and solution to effectively enhance social economic development in accordance with the social situation.

Along with that, the duties set at the beginning of this year need implementing strongly, synchronously, and effectively; every effort should be made to gain the best result of social-economic development target set in 2012. Specifically, it is prioritized to focus on strictly controlling the price, managing to accomplish the target of putting inflation under 2-digit number; controlling inflation… which are not only for this year but in the future as well.

When controlling inflation, Prime Minister Nguyen Tan Dung suggested boosting credit growth rate; controlling general means of payment; stabilizing exchange rate; strictly controlling interest rate, not letting interest rate increase any higher.

The Prime Minister emphasized that through thorough and synchronous methods, it is essential to achive the target of inflation control and macro-economic stability, this target is not only set in 2012 but also many years later for the sake of the sustainable development of the country.

As for the fiscal issues, in the difficult situation, it is required to maintain the balance of revenue and expenditure, keeping deficit stable at 4.8%. As for revenue and expenditure, it is allowed to advance the national budget of only 30,000 billions vnd as approved.

It is also to ensure demand-supply balance of merchandise, not letting shortage of goods or price fever happen. It is time to consider the balance to ensure sufficiency of goods for the last months, especially foods. Besides, merchandise balance should be combined with the price stability, control and management.

Continuing to put the price control policy into practice following the market price, but that requires the route, not do it strongly and rapidly and calculate the social-economic impact carefully after price adjustment.

To gain the growth target of more than 5% in 2012, President Nguyen Tan Dung requires the concentration on resovling the problems of production, business; boosting production and export on advantegous goods such as rice, aquatic products, textile products, leather goods; developing services such as tourist, finance, banking, communication, aviation; resolving inventory problems, especially the construction materials; resolving problems for the real estate market.

Boosting and restructuring the economic mechanism, which includes the public investment, state-owned entrepreneur and banking restructuring. As for state-owned entrepreneur restructuring, it is prioritized to concentrate on restructuring groups, and corporations, rearranging the scope to be appropriate for the market and financial ability; focusing on the main sectors. As for banking restructuring, it is important to solve the bad debt together with handling bad commercial banks.

On mentioning the social security and welfare, the President specially asked the Ministries, sectors and localites to pay attention to ensuring the implementation of job creation, poverty reduction, ensuring the financial source for student loans.

At this session, the Goverment also listened to the report, discuss the report on VAT solutions pursuant to Resolution 37/NQ-CP; the project of Law on Public Investment; the roject of Legal Documents amending some articles stipulating State honorable title “Vietnam’s Hero Mother”.

Source: Vietnam Government Portal