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Government Meeting Puts Inflation in Focus (9/5)
09/05/2011 - 13 Lượt xem
Nguyen Xuan Phuc, a politburo member and the minister-chief of the Government Office, said that as a result of comprehensive and tough measures and high unanimity of all sectors, businesses and people in implementing Resolution 11, the economy grew in the first four months of this year; initial achievements were visible in managing money, credit, interest rate, foreign currency and gold; and foreign currency balances were kept, while the price of gold and foreign currency fell.
Industrial production increased faster than what was projected for the year amounting to more than VND71.6 trillion this April (up 14.3 percent from a year ago) and more than VND270.5 trillion in the first four months of this year (up 14.2 percent).
Exports continued to grow hitting a little more than US$26.9 billion in the first four months of this year, a 35.7 percent increase against a year ago and about three times higher than what was adopted by the National Assembly (10 percent). Agriculture was also good as the sector took the initiative in overcoming natural calamities. Services boomed, with a wide range of tourism events and a high increase in total retails and service revenue.
Development investment capital was streamlined. Budget spending reduced while public investment improved. Reports by 40 provinces and cities show that about VND96.88 trillion will be saved this year, accounting for about 10 percent of total investment by all sectors in 2011.
State budget revenue increased rapidly exceeding VND221 trillion in the first four months representing 37.1 percent of what was estimated for the year and increasing 19.1 percent from a year ago. Total state budget spending was about VND238.9 trillion making up 32.9 percent of what was estimated for the year. Most large sources of state budget revenue increased meeting the need for state budget spending and debt payment. People's livelihoods, particularly those of the poor and low-income people caught attention from authorities.
However, hot problems exist, particularly regarding high inflation and trade deficit. The inflation rate reached 3.32 percent this April (a record high since 1990) and 13.95 percent for the first four months of this year. Trade deficit is under control despite the current trend of luxury imports. Workers' livelihoods, particularly those of the poor and low-income people were hard. Trade deficit stood at US$1.4 billion in April (the highest so far this year) representing 19.2 percent of export revenue.
At the government regular meeting in April, Prime Minister Nguyen Tan Dung emphasized that rapid increases in the price of goods are challenging the government. He said that although domestic and foreign experts predicted that inflation would reduce progressively next months, every possible measure should be taken to control inflation. Increased bank interest rates have created difficulties for producers and reduced liquidity at several banks. They have also put a number of businesses and the real estate market in a difficult position. Nguyen Tan Dung asked leaders of ministries and sectors to stay abreast of socioeconomic changes in Vietnam and the world, particularly changes in the price of oil, materials and food in order to make accurate predictions and timely cope with the changes. Every ministry/sector/province/city needs to continue implementing Government Resolution 11/CP.
It is expected that inflation would be 12-13 percent this year and the economy would grow more than six percent. Prime Minister Nguyen Tan Dung asked related ministries to tighten management of import tariffs on luxury goods including expensive cars to prevent tax evasion and curb trade deficit at 16 percent at the end of the year./.
Source: VEN
