Gov’t persists in curbing inflation

PM Nguyễn Tấn Dũng presides over the Government’s regular meeting in May, Hà Nội, June 3 – Photo: VGP/Nhật Bắc

The Government has set other goals for these ministries, sectors and localities, including a GDP growth rate of 6%, budget overspending reduction of below 5%, trade deficit of less than 16%, and public spending cut by 10%.

These goals needed to be achieved by the year end, asserted PM Nguyễn Tấn Dũng at the May regular meeting which was held on June 1-2 in Hà Nội.  

Positive outcomes

In the context when many countries in the world have been struggling against a variety of difficulties, including price hikes, soaring inflation, food and energy security problems, and political complexity, socio-economic performance in Việt Nam showed positive signs.

These were a contraction of 5% in budget overspending, a decline in CPI, and an impressive surge of 32.8% in export turnover.

Group of solutions

However, difficulties still lie ahead, said Mr. Dũng.

He pointed out that although decreasing, inflation remains high, trade gap is yet to shrink; and the people’s living standards are low.

The Government chief requested his inferiors to resolutely implement the Resolution 11 on key solutions for controlling inflation, stabilizing macro-economy, and ensuring social welfare, to address these matters. 

In the short term, Mr. Dũng noted eight prioritized solutions: to (1) apply flexible monetary policy, prioritizing production; (2) control price hikes and prevent speculation; (3) reduce budget overspending; (4) narrow trade deficit; (5) axe public investment; (6) promote social welfare; (7) ensure social security and national defense; and (8) boost information dissemination. 

Some major indicators in first five months of 2011

(Source: Report of the Ministry of Planning and Investment)

By Hương Giang