Vietnam PM Orders Stop Fundraising for New Projects

Vietnamese Prime Minister Nguyen Tan Dung on May 15 requested provinces and cities to halt fundraising from bank loans and bond issues for new fundamental infrastructure projects in a government effort to cut public investment to curb inflation, the government stated on its website.

 

The prime minister also asked the finance ministry to supervise, inspect and guide localities in abiding by the decision.

 

To slow down overheated economy, reduce inflation, the government is continuing the tightened monetary policy, cut down public investment, lower credit growth to below 30 per cent this year.

 

Due to economic difficulties, the prime minister proposed cutting GDP growth rate to 7 per cent from 7.5 per cent-8 per cent at the ongoing national assembly working session.

 

Governor of the State Bank of Vietnam has met with IMF official and the U.S. ambassador to discuss measures to stabilize macroeconomy.

 

Vietnam’s inflation soared 21.3 per cent in April this year, up from a year earlier. (Government’s Website)