Opening his report, PM Nguyễn Tấn Dũng said that the current price escalation is a normal phenomenon.

The consumer price index in the first eleven months increased by 9.58% against last December.

The price escalation is attributed to the fluctuations in the global market and usual high consumption demand at the year end, emphasized the PM.

In October, the Government issued Directive 1875 to stabilize prices through a series of measures, including tighter market control and heavier punishments agaisnt commodity speculation.

In the long run, the Government will speed up the tranformation of economic structure and improve competitiveness to lay a firm foundation for inflation control and macro-economic stability, said PM Dũng.

About bauxite projects

Việt Nam is rich in bauxite with a reserve of some 11 billion tons, concentrating in the Central Highlands. The mineral is a fundamental factor for the country to develop aluminum industry.

The bauxite exploitation and processing were adopted as a consistent policy by the Party Communist of Việt Nam years ago, PM Dũng said.

Tân Rai and Nhân Cơ factories are the first bauxite projects to realize the policy. The first one is scheduled to come into operation in April next year and the latter the following year.

After the recent red-mud spill in Hungary, the Government asked relevant ministries and agencies, particularly the Việt Nam National Coal and Mineral Industries Group (Vinacomin) to review subprojects relating to the construction and operation of the red mud reservoirs.

Vinacomin was assigned to hire competent foreign consultants to re-access the design of the reservoirs for further safety.

The Government chief also asked the Ministry of Industry and Trade to dispatch a delegation to Hungary to evaluate the red mud spill there.

PM Dũng confirmed that after considering the foreign consultants’ evaluation, the Government will make the final decision and the Tân Rai Project will only be resumed if environment safety is secured.

Vinashin case

In 1993, the Party Politburo issued a Resolution on sea-borne economy with comprehensive development of seaports, ship fleets, maritime services, ship-building and repairing services.

Ship-building is considered the spearhead industry and as a result, Vinashin was founded in 1996.

Within 1996-2008, Vinashin posted an annual growth rate of 35-40% with modern facilities and a workforce of 70,000, including 55,000 technical workers.

Until early 2009, the Group had signed ship-building contracts worth of nearly US $12 billion.

The Government chief pointed out the main reasons leading to the current deadlock of Vinashin, including inaccurate reports and weak capacity of the mangement board. He frankly recognized his responsibility in the Vinashin case.

To rescue one of the most important economic groups, PM Dũng ordered Vinashin to cut down its 106 investment projects with total capital of VND 64 billion to just 13 projects in 2010-2011.

In July 2009, the PM decided to set up an inter-disciplinary task force to work out a restructuring scheme for Vinashin and ordered security agencies to investigate the case. In August, a Steering Committee for restructuring Vinashin was founded, headed by Permanent Deputy PM Nguyễn Sinh Hùng.

Currently, as PM Dũng said, the Government Inspectorate is finalizing the inspection work and an independent auditor is reviewing Vinashin’s business performance this year.

On November 18, the Government chief ratified the plan on restructuring Vinashin with an aim to stabilize its production, resume its prestige, and secure its role as the mainstay of the sea-borne economy.

The Vinashin case pushes the Government to refresh the Group’s operations to maintain a strong ship-building industry and to improve State management over State-owned enterprises (SOEs).

For future management over SOEs, PM Dũng said that State administrative agencies will not directly interfere in SOEs’ business operations. The Law on using State capital and property for business activities will soon be submited to the NA.

The establishment of new SOEs will base on socio-economic development strategies in each period while the Government will continue to speed up SOEs equitization, PM Dũng said.

SOEs will be independently audited and the results widely announced for public supervision and inspection.

By Hải Minh