Six Solutions for Macro-economic Stability

 

The six solutions aim at restraining inflation, promoting exports and reducing the trade deficit, improving payment balance, ensuring resources for achieving socio-economic objectives, maintaining the stability and safety of the financial-banking system, continuing the development of production and business activities, and upgrading ideological and information works to ensure social consensus.

 

According to the first solution highlighted in the Resolution, Vietnam State Bank will apply a flexible and careful policy to maintain credit interest rate at around 25 % and total payment around 20 %, at the same time ensuring that commercial banks implement mutually agreed interest rates for efficient production and business projects in accordance with the Resolution of the National Assembly.

 

The Ministry of Industry and Trade will review and evaluate product supply and demand for production and consumption, first for essential items such as rice, sugar, milk, medicines, animal feed, fertilizer, petroleum, cement, steel, etc. The Ministry must closely follow developments of domestic and foreign markets and apply timely measures to regulate and stabilize the market, especially of essential items, preventing shortages and price hikes.

 

The Ministry of Finance, in conjunction with Ministry of Industry and Trade and related ministries and organizations, will maintain a stable household electricity price and coal price for power production until the end of 2010. At the same time, oil prices must be controlled to ensure market principle in business operation. Business expenses and tax rates must be reviewed to prevent short-term price hikes causing losses to production and consumers.

 

To ensure an export growth rate of over 6 % and trade deficit of 20 % in 2010, the government asked the Ministry of Industry and Trade to implement measures to increase exports and control the trade deficit in compliance with the guidance of the Prime Minister. Trade promotion must be upgraded to expand markets and the export share of businesses, and at the same time applying policies encouraging businesses to increase exports.

 

In quarter II of 2010, the Ministry of Industry and Trade will submit to the Prime Minister a policy and mechanism to encourage organizations and individuals at home and abroad to invest in industries producing high quality products substituting for imported products, further reducing the trade deficit at present and in the long term.

 

For the same purpose, the government has asked Ministry of Finance to simplify administrative procedures in customs to save time and money for export activities.

 

In 2010, State budget revenue will increase 5 % over the target set by the National Assembly. Disbursement and efficient use of ODA will be promoted.

 

The Ministry of Planning and Investment will review investment projects originated from the State budget or Government bonds to regulate capital of central and local budgets, to concentrate capital on important and urgent projects to be completed in 2010. Capital will be cancelled for projects that remain without investment, except local capital for foreign investment projects.

 

At the same time, there will be policy attracting investments from organizations and individual, local and foreign investors, to increase participation in development investment. Investment projects will be announced to mobilize all possible resources.

 

Ministry of Agriculture and Rural Development will coordinate with related ministries and localities to promote production and agricultural exports, in particular highly competitive products such as rice, coffee and aquatic products.

 

Consumption mechanisms will be developed to ensure the best prices and interests of producers when world prices decrease. Exporters should cooperate to maintain markets and reasonable export prices.

 

To ensure access to capital by businesses, organizations and individuals, especially rural businesses, export enterprises, small and medium enterprises, the Vietnam State Bank asks credit organizations, in particular State-owned commercial banks to cut expenses and reduce interest rates acceptable to the market. (Government Portal)