Fiscal and monetary policies must be consistent with one another, but some are saying current policies are discordant, what do you think about this?

Our goal for 2008 is maintaining a high economic growth rate, in the context that the world economy is regressing. We still have to take advantage of us being a developing country as well as the opportunity of being a highlighted destination of international investors. Specifically, this year we have to strive for a higher growth rate than 2007.

We have to focus on social issues, hunger eradication and poverty reduction. Our goal is for the hunger eradication and poverty alleviation ratio to be equal that of 2007, which fell from 14% to 12%.

Macro-economic conduct must be consistent to ensure economic growth and control inflation, so the monetary policy needs to be strict and tight.

I must say that macro-economic conduct is still inconsistent, and that resulted in adverse phenomena in the early days of the lunar new year. The Financial and Monetary Council met with the Prime Minister and will make adjustments.

Healthy social and economic demands, including the need for capital for developing the real estate market, must be met. We have to develop the stock market, because it is a significant long-term capital raising channel.

Commercial banks have been asked to stop lending to real estate projects to avoid risks and cool down the market. What is your opinion on this?

The real estate market is overly hot because of the demand and supply imbalance. We grant licenses too slowly, develop residential areas too slowly, and as a result, there is speculation.

What is speculation? The first is getting licenses and then selling them and the second is buying houses to sell, not to use. We have to combat these investment methods. Capital sources of the State and credit institutions for the real estate market must serve investment, not speculation.

We have to control speculation. I must assert that lending for real estate should continue to develop the market, increasing the source of supply will go with strict control to prevent speculation.

While the prices of goods have been rising quickly, the price for gas has also increased. Will this influence the Government’s efforts in controlling inflation?

The petrol price is subject to the global market, so we have to increase the gas price.

Where is the money to compensate for gas importers? While we compensate losses for gas importers, some illegally sell gas to neighboring countries. So we can’t continue compensating losses for gas importers anymore. We have to become subject to the international market. But I want to emphasize that the Government is seeking to support those who are suffering from price increases.

Source: VietnamNet.