Up to 100 Vietnamese economists and policy advisors gathered on August 21 at a seminar to discuss three core measures to rein in inflation in the remaining months of this year, state media reported Wednesday.
The three measures covering monetary policy, finance-price policy, and market management and control were actively debated the the meeting hall.
Dr. Nguyen Dai Lai, Vice Head of State Bank of Vietnam’s Strategy Department suggested that the central bank necessarily adopts urgent solutions to withdraw money from the circulation by issuing appropriate amounts of bonds, treasury bills, continues raising the compulsory reserve funds and discounts rates in addition to a campaign against dollarization.
SBV should be allowed to operate as an independent institution, Lai reiterated.
Dr Tran Dinh Thien of Vietnam Economics Institute urged to reduce the government expenditures, adopt strong measures to withdraw moneys from the economy, reduce taxes and loosen imports.
To tighten the state control over growing consumer price, Hoang Tho Xuan, Head of the Ministry of Industry and Trade’s Domestic Market Policy Department, proposed that effective distribution networks should be built in a bid to cool down overheated prices of goods.
Dr Vo Tri Thanh from the Central Institute of Economic Management stressed that to curb inflation, Vietnam should meet three conditions: creating a healthy competition, building a supervision and arbitration mechanism to solve disputes, and proper sanctions to reduce monopoly.
Thanh also pointed out shortcomings in the government of Vietnam’s salary and fiscal policies whilst foreign investment inflow is growing. Vietnam lacks a long-term development strategy, Thanh noted.
Deputy Prime Minister Nguyen Sinh Hung issued directive asking the Ministry of Finance to take measures to reduce goods prices and SBV to adopt monetary policy to regulate payment balances, withdraw surplus moneys from the economy.
Consumer price indexes of Vietnam are forecast to be 8.4 per cent, Nguyen Duc Thang, Vice Head of General Statistics Department’s Trade, Service and Price Division said.
In July of 2007, CPI soared 0.94 per cent, bringing the Jan-Jul index to 6.19 per cent, Thang said.
Vietnam’s central bank pumped about VND112 trillion to absorb about $7 billion in a move needed to curb inflation on the Jan-Jul. (Labor, Tien Phong Online)
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