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PM Calls for Sterner Inflation Control Measures
13/07/2011 - 11 Lượt xem
Encouraging results
Thanks to applying strong methods, the economy in the first six months of this year saw encouraging results, contributing to curbing inflation, stabilizing the macro economy and guaranteeing social security.
According to statistics, in the first six months of 2011, industrial production grew 14.3 percent from the same months of last year with agricultural production increasing 3.7 percent compared to the same period of 2010. In the service sector, in the first six months of this year, the retail sales and revenue from consumer services totaled more than VND911 trillion, marking an increase of 22.6 percent from the same months of 2010. The number of international tourists visiting Vietnam increased 18.1 percent compared to the same period of last year. In the first six months of this year, about 722,800 jobs were created, equal to 45.2 percent of the year plan. Among those, overseas workers are 44,000, equal to 50.6 percent of the year plan.
Noticeably, export revenue saw a strong growth rate. In the first six months of this year, export revenue increased 30.3 percent compared to the same period of last year, three times over the target set by the National Assembly (10 percent). The trade deficit in June 2011 was US$0.4 billion, equal to 5.1 percent of export revenue. This is the lowest percentage recorded during the first six months of the year.
To implement Resolution 11, the government, ministries, departments and localities have cut VND80.55 trillion from total investment capital in 2011 (excluding the decrease in capital sourced from the state budget in 2011 compared to 2010), equal to nine percent of total investment capital in 2011.
Policies related to currency and credit have proved their efficiency. At present, the foreign currency and gold markets have been stabilized. Total means of payment by June 20, 2011 increased 1.25 percent compared to the previous month and 2.45 percent from December 2010. Banking liquidity has been improved. Bank deposits by June 20, 2011 grew 1.04 percent from the end of previous month and 2.88 percent from the end of 2010. Bank interest rates have tended to decrease due to price reductions. The foreign exchange rate has been stabilized. The interest rate applied to deposits in Vietnamese Dong is at 15.5 percent and the interest rate applied to loans in Vietnamese Dong at 18.7 percent. The exchange rate in the foreign currency market has remained lower than the ceiling rate decided by the State Bank of Vietnam. Foreign currency reserves have increased to nearly US$3 billion.
Thank to the government's positive methods, inflation has gradually been controlled. The consumer price index in June 2011 grew 1.08 percent from the previous month, marking the lowest level from the beginning of the year. Because the government has focused on curbing inflation and stabilizing the macro economy, the economic growth rate in the first six months of this year stood at 5.5 percent, but lies well with expectations.
Stronger methods
According to the Prime Minister, despite encouraging results, the country has faced many weaknesses such as high inflation rate, difficult business and production situation, gloomy securities markets, high trade deficit, large number of traffic accidents and unstable real estate market.
The Prime Minister emphasized that from now until the end of the year, the country will strive to take stronger and more effective methods to curb inflation, stabilize the macro economy and guarantee social security.
He said it was necessary to realize some of the major targets of 2011 such as constraining inflation at 15-17 percent, credit growth rate at 20 percent, the trade deficit at less than 16 percent of the export revenue, Gross Domestic Product (GDP) growth at six percent and overspending less than five percent.
To reach those targets, there is a need to use methods set by Resolution 11, including effectively implementing currency policies.
In addition, it is necessary to control interest rates to ensure the reduction of inflation and strictly implement belt-tightening policies such as reducing expenditure and public investment and using those savings for social security.
The Prime Minister asked to guarantee the balance between supply and demand in the economy, especially in relation to essential goods, through price controls and a stabilized market to avoid speculation./.
Source: VEN
