Vietnam has set a target to curb increases in the consumer price index (CPI) for 2007 to below 7 per cent to ease inflationary pressures as the country’s GDP is expected to grow over 8 per cent.
Finance Deputy Minister Tran Van Ta said the Finance Ministry will exert greater efforts to stabilize market prices and control inflation so it falls at least 1 per cent below GDP growth.
To make sure inflation is on track, Ta said the MoF has initiated the following six measures;
First, the government will continue to instruct the easing of difficulties and challenges facing businesses in production and export and import activities.
MoF proposed the government keep a macro level balance between goods and services supply and demand, particularly in electricity, oil and gas, steel, cement, fertilizer and consumer goods.
Second, MOF will tighten controls over state budget collection and spending, and cap the state budget deficit at under 5 per cent of GDP.
Third, the ministry suggests controlling the circulation and printing of money within the economy, in addition to monitoring credit activities and foreign exchanges.
Fourth, the government will continue to apply market price mechanisms to land and other natural resources.
Fifth, ministries and sectors must strictly abide by thrift and anti-waste laws, particularly in spending, public asset procurement and capital construction costs.
The government will step up market controls while restructuring trade networks to avoid market manipulation incidents. (VNS)
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