Inflation curbing, macro-economic stabilization, social welfare guarantee, and public investment reduction are still the Government’s first priorities in coming time, according to the Government’s decision on Wednesday.

The Government's regular meeting for March, Hà Nội, March 30, 2011

The decision was issued at the Cabinet’s regular meeting for March to review the country’s socio-economic performance in Q1/2011 and the results of the implementation of the Government’s Resolution No. 11/NQ-CP.

Initial public investment cuts 

The Cabinet members noted that ministries, sectors and localities have focused on effectively realizing the Government’s Resolutions No. 11 and No. 2, despite the global fragile conditions and price hike pressure.

Initial report shows that 30 ministries, 63 provinces, and 12 State-owned enterprises (SOEs) have cut nearly VND 3.4 trillion of public investment in 1,387 projects.

New decree on gold trading management to be promulgated soon

In support of inflation curbing, the State Bank of Việt Nam (SBV) has required credit organizations to adjust their operations by shifting capital to assist businesses, agricultural production, rural development, exports, small- and medium-sized enterprises, and supporting industries.

The credit organizations must reduce interest rates in VND to the maximum level of 14% per year.

SBV said that it will soon submit a new decree on management of gold trading to the Government for consideration.

In March, police forces, in collaboration with competent agencies, took tough measures to uncover illegal foreign currency exchange establishments, as well as organizations and individuals who try to speculate the gold market.

Export triples

The first quarter’s GDP is estimated to increase by 5.43%, while industrial and agricultural production increase by 14.2% and 3.5%, respectively, said Minister of Planning and Investment Võ Hồng Phúc.

Noticeably, the service sector saw a big growth the reviewed period. Total retail sale of goods and services reached over VND 451.8 trillion, up 22.6% against the same period last year.

The FDI disbursement reached US $2.54 billion, or a year-on-year increase of 1.6%. The country attracted 173 new projects with total registered capital of nearly 2.04 billion.

Total export turnover in Q1 is estimated at US $19.2 billion, up 33.7% against the same period last year, and triple the NA’s preset target.

Rubber, garments, footwear, electronics, computers, aquaculture, and coffee are among products yielding high export earnings.

Care for poor and low-income groups

The Cabinet members agreed that social welfare policies have been fruitfully realized since the beginning of the year, with the aim to assist ethnic minorities and poor households..

The poor households have been directly provided with VND 30,000 per each per month since the power prices were increased.

In the first quarter, nearly 343,000 jobs have been created, including over 17,000 laborers sent to working abroad.

The Government also tried to quickly evacuate over 10,000 Vietnamese workers from Libya. Each of them received initial support of VND 1 million.

The Government also unanimously agreed that it will provide urgent assistance to low-income groups and small- and medium-sized enterprises.

Continued implementation of approved solutions

Concluding the meeting, PM Nguyễn Tấn Dũng noted that the country’s socio-economic performance in Q1 is positive.

He also said that global price hikes and domestic petrol price increase have resulted in high inflation.

On the other hand, tightened monetary policy and public investment cut could lead to production standstill, the PM reminded.

Therefore, capital should be prioritized for businesses, agricultural production, exports, supporting industries, and SMEs. The lending rates must be gradually lowered.

The Government also determined to remove all illegal foreign currency exchange establishments and gold bar trading on free market.

It will also try to ensure the power provision for production, enhance market management, pay care for low-income groups, including workers in industrial parks and processing zones./.