The MoF said it would closely control prices of goods and services with payments derived from the State budget; apply fees and prices subsidies; pool efforts to overcome difficulties for agriculture sector due to the long drought and bad weather and apply policies to help poor people and fishermen when prices increase high.

The MoF will continue to boost disbursement, especially disbursement of investment capital, particularly focusing on effective projects which are capable of being completed in 2008. The ministry will also continue to issue treasury bills and government bonds for investment in transports and irrigation and equitise State-owned enterprises as planned.

The work on inspection, control of the domestic market, fighting trade fraud and realisation of the State’s pricing policies will continue to be boosted. The MoF will also search for measures to support part of the population, especially poor people, policy beneficiaries and natural disaster-stricken victims.

Incomes from securities investment of individual investors will not be subjected to tax this year. Initial public offerings by joint stock companies will be slackened, thus reducing the supply of “goods” to the stock market. Foreign investors are allowed to buy up to 40% stake in unlisted public companies. The State Capital Investment Corporation will buy certain stocks to help soothe the market. The MoF will closely co-ordinate with the State Bank of Vietnam in managing and supervising banking and stock market activities.

The State Bank of Vietnam’s measures mostly focus on management of monetary policies to clean up the operations of credit organisations to restrain inflation and control prices.

The State Bank of Vietnam (SBV) will widen the foreign currency trade band to 1% on either side of the average rate in the inter-banking market instead of the current 0.75% as of March 10.

SBV will maintain stable primary interest rates and use monetary policy tools to stabilise savings and lending interest rates in accordance with the market’s capital demand and supply.

SBV will also continue to provide capital support to commercial banks to ensure their liquidity through open-market transactions and other re-loaning instruments. The ceiling interest rates in open-market transactions will be fixed at 9-10%.

The SBV plan to issue VND 20.3 trillion of treasury bills scheduled for March 17 will be continued.  

Commercial banks are urged to continue to provide lending to securities investment in conformity with current regulations.
Source: Nhan Dan