Government Admits Difficulties Demand Immediate Solutions
21/11/2011 - 13 Lượt xem
Head of the Government Office, Minister Vu Duc Dam stressed at a cabinet press briefing that socioeconomic difficulties demanded immediate solutions.
Source: VEN
According to Minister Vu Duc Dam, the Government conducted a review of the socioeconomic situation in the first 10 months of the year and concluded that during October the country had seen active improvements.
Some of October's results included the Consumer Price Index (CPI) increasing by only 0.36 percent - the lowest rate since the beginning of the year and the third successive month the rate remained below 1 percent; budget revenue met projected figures; export value grew 34.6 percent over the same month of last year; the import value increased 9.6 percent over the export value in October, which helped reduce the 10-month import value to almost 10.8 percent over the export value in the same period - a much lower rate than the 16-percent predicted.
At the meeting, the Government also agreed that there were a host of difficulties to overcome in the context of an unstable global economy affecting the domestic environment. Although the dong inflation rate had decreased an 18-percent devaluation would be a challenge.
The pressures will increase until the year end on CPI, interest rates and forex rate management, production and sales and real estate. Despite cheaper interest rates, they remain too high for most businesses to afford.
The Ministry of Planning and Investment (MPI) is responsible for compiling a list of businesses that have gone bankrupt or suspended trading for consideration in terms of tax reductions and financial solutions.
The Government decided to continue restructuring state enterprises and rapidly audit their investment plans. State investment will focus on some key sectors, and state investment in banking, securities and real estate will be withdrawn. The banking system will face systematic renovation in terms of scale, effectiveness and progress.
'In any case, bank customers will have guaranteed their deposits, meaning banks should remain healthy and financially controllable," said Minister Vu Duc Dam.
The Government has taken into account requests from businesses and organizations and will actively direct the implementation of financial policies in order to boost domestic production and economic growth.
At the press conference, Minister Vu Duc Dam also insisted that energy price regulations must remain in harmony with the control of inflation and macroeconomic stabilization. The Government had phased in the regulations in prices of energy and some essential goods and services.
However, the Government decided not to increase power prices immediately and would only consider doing so, at a more appropriate time. The power sector would need to publicize the power production cost and results./.
Source: VEN
