PM: Vietnam’s Inflation Control Continues To Be 2009 Priority

HANOI, Nov 22 (Bernama) — Prime Minister Nguyen Tan Dung has made the prevention of the recurrence of inflation in Vietnam’s general target for 2009, the Vietnam news agency (VNA) reported.

Addressing a meeting here regarding the Planning and Investment sector’s work for 2009, the Prime Minister also reiterated next year’s gross domestic product (GDP) growth rate target of 6.5 percent.

In order to attain this target, the Planning and Investment sector should act as advisors over the balance and control of supply and demand to help stabilise the macro economy, as well as being active in preventing economic decline and maintaining an appropriate growth rate, the PM said.

The Government leader also pointed out the impact of the global economy’s recession on the domestic economy, particularly in areas such as exports and tourism.

As a result, he asked the sector to take necessary measures to minimise the effects of the world’s economic downturn on the country’s economy.

In this context, it is difficult for investors to implement their projects and arrange capital, although the country has attracted large sums of foreign direct investment this year.

Thus, the sector should create favourable conditions for the mobilisation of investment in effective projects, he added.

The PM stressed the necessity of a controlled loosening of its monetary policy, reducing interest rates along with investment stimulation and increasing the banking system’s liquidity and security.

In his opinion, there should be policies assisting small and medium-sized enterprises involved in export activities through preferential credit, tax incentives and guaranteeing

In addition, State-owned enterprises should receive more support in order to be able to form the backbone of the economy and be capable of regulating the market and the economy when it faces difficulties, he remarked.

The PM also asked the Planning and Investment sector to improve their capacity for forecast and supervision to ensure the fulfillment of next year’s targets.

To ensure social security, the Government is to offer unemployment benefit, he said.

Besides, a resolution regarding policy orientation and specific mechanisms for sustainable hunger eradication across the 61 poorest districts is soon to be announced, he added.

“The target is to bring the current poverty rate of 50 percent of households in these districts down to 40 percent by 2010 through the introduction of support policies for afforestration, plantation and animal husbandry,” he stressed.



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