PM Nguyễn Tấn Dũng: The Resolution No. 11/NQ-VP is timely promulgated

Participants to the meeting unanimously agreed that positive outcomes have been recorded following the implementation of the above resolution.

Interest rates have been stabilized after strong variation at the end of January. The lending rate of Việt Nam Dong in late Q1 increased 0.5-1% compared with those in late January, to 16.23% per year.

Meanwhile, the average mobilizing and lending rate in foreign currency is 4.2% and 6.37% per year, respectively.

The stability of interest rates is attributed to a series of timely measures taken by the State Bank of Việt Nam to cool down credit growth, participants said.

The country’s export turnover in the Q1 is expected to grow 29.7% to US $18.8 billion or three times higher than the NA’s preset target. Import value reached US $21.8 billion, up 23.9% against the same period last year.

Consumer price index in March rose by 1.8 – 2.2% against the previous month.

In the Q1/2011, the national economy continued expanding with slower pace compared to the last quarter of 2011. The GDP is estimated to grow at 5.4-5.6% in the reviewed period.

The Q1/2011 is also featured with strong growth in service sector and strengthened social welfare policies.

However, the Government noted that challenges are still lying ahead. High interest rates and price fluctuation caused some affection the country’s production and people’s life.

Specific plan needed

Concluding the meeting, PM Nguyễn Tấn Dũng said that the resolution was timely promulgated to address the right issues.

After more-than-a-month implementation, the resolution has helped stabilize foreign exchange rate, gold price and market, highlighted the Government chief.

PM Dũng also pointed out some problems relating to gold and foreign currency management emerged since the resolution was introduced, adding that the global economic outlook would be still complicated in the time to come.

The PM requested ministries, sectors and localities to continue strictly implementing the resolution by developing their own specific action plans.

Tight and cautious money policy and anti-dollarization of the national economy must be seriously observed. Strict punishments will be given to illegal Greenback trading activities, PM Dũng ordered.

He also required adequate foreign currency sources to meet individuals and enterprises’ legitimate demand and gradually put stop to gold bar trading on free market.

Regarding export, the Ministry of Industry and Trade was assigned to boost export of agriculture produce to maximize farmers’ interests.

The Government chief called for drastic cut in public investment and non-essential expenditure items as well as power saving.

Despite difficulties, PM Dũng still requested the Ministry of Labor, Invalids and Social Affairs to ensure social welfare.

By Hải Minh