Resolution 11 to go into next year

Speaking after the first monthly meeting of the 13th Government in Hanoi last week, Vu Duc Dam, chairman of the Government Office, said the Government will continue strict and effective implementation of monetary and fiscal polices in line with the resolution.

“The key solutions need to be better to help the local economy make a breakthrough in 2013 given more favorable conditions globally,” Dam said.

Cabinet members at the three-day meeting predicted an inflation rate at 9-11% this year while gross domestic product growth would be around 6.5%.

The Government admitted great hardship in the country with the consumer price index (CPI) in the first eight months of this year climbing 17.64% year-on-year. The Prime Minister wants to get to the crux of the weaknesses as to why inflation has been high, or there have been problems with fiscal and monetary policies and the economic structure, Dam said.

The Government will make special reports to analyse causes of inflation by the end of the month, Dam added.

Central bank governor Nguyen Van Binh, meanwhile, said that the nation’s credit growth soared to 11.7% in the January-August period, compared to the year’s target of 18%. “The figure is higher than last year’s average and is at a high level,” he said.

Concerning an interest rate cut plan after the meeting with the 12 largest banks, Binh stressed the plan was not a subjective wish of his or a certain number of people. “This is an essential demand of the economy, banks and businesses,” Binh said.

Binh also said Vietnam has imported only seven tons of gold out of the quota of 15 tonnes and assured the people it was safe to deposit gold at State agencies.

On the other hand, Finance Minister Vuong Dinh Hue affirmed the ministry would handle an amount of around VND2 trillion (USD240.3 million) that had been improperly used at state-funded projects with regards to Resolution 11. The ministry also targets to cut the State budget deficit to 4.9% of GDP compared to 5.3% registered to the National Assembly before.

The ministry in the future will sign an agreement with the central bank, combining fiscal and monetary policies to serve the aims of macro economic stabilisation, Hue added.

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