Vietnam’s prime minister Nguyen Tan Dung has ordered the State Bank of Vietnam (SBV) to study appropriate policies to ask commercial banks to withdraw money out of circulation quickly to reduce pressure on prices, especially in end- 2010.
Dung has also issued a directive requiring ministries, sectors and localities to strengthen the implementation of measures to stabilise prices and markets in the last months of 2010 to ensure that growth reaches 6.5 percent, the consumer price index (CPI) for the whole year at about 8 percent.
The directive stated clearly, at least in the fourth quarter, the Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Ministry of Health, and Ministry of Construction must be complete and announce their development plans in manufacturing and distributing system of petroleum products, fertilisers, construction steel, cement, food and medicines.
As directed by the prime minister, the Ministry of Industry and Trade must review the production capacity and supply chains to have specific plans to ensure the balance of supply and demand of essential goods and services for production and consumption from now to the end of 2010, Q1/2011 and demand for goods during the Tet festival 2011.
The finance ministry was asked to direct state authorities to strengthen control of prices and determine the prices of essential goods, items subject to price stabilisation, especially items of medicines, dairy products, construction steel and construction materials, gas… keeping power prices stable, the price of coal sold to cement producers, fertiliser, paper. To stabilise gasoline prices, the finance ministry will have to use flexible tax tools, fees, and price stabilisation fund.
Also, Dung directed the State Bank of Vietnam to continue operating monetary policy initiative and flexibly, ensuring the growth of credit and liquidity at a reasonable level; to gradually reduce lending interest rates, operating flexible exchange rates, ensuring macro-economic balance, to encourage exports and increase foreign currency reserves, to review and evaluate the management of prevailing currency and credit regulations to take the necessary adjustment on the principles of safety credit – banking system to promote business development.
Dung once again stressed that the central bank must study to have an appropriate policy and mechanism to direct commercial banks to withdraw money out of circulation quickly to reduce pressure on prices, especially at the end of this year when the volume of payments for works and projects are forecasted to be made with high density and New Year festival when the amount of bonus and salaries are paid in large quantities.
The Ministry of Agriculture and Rural Development must direct the Vietnam Food Corporation to ensure food and organise food retail system timely to meet the food needs of people, paying attention to urban areas, industrial zones, densely populated and disaster areas, flooding, not letting the lack of goods, the sudden price rise.
Dung has also issued a directive requiring ministries, sectors and localities to strengthen the implementation of measures to stabilise prices and markets in the last months of 2010 to ensure that growth reaches 6.5 percent, the consumer price index (CPI) for the whole year at about 8 percent.
The directive stated clearly, at least in the fourth quarter, the Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Ministry of Health, and Ministry of Construction must be complete and announce their development plans in manufacturing and distributing system of petroleum products, fertilisers, construction steel, cement, food and medicines.
As directed by the prime minister, the Ministry of Industry and Trade must review the production capacity and supply chains to have specific plans to ensure the balance of supply and demand of essential goods and services for production and consumption from now to the end of 2010, Q1/2011 and demand for goods during the Tet festival 2011.
The finance ministry was asked to direct state authorities to strengthen control of prices and determine the prices of essential goods, items subject to price stabilisation, especially items of medicines, dairy products, construction steel and construction materials, gas… keeping power prices stable, the price of coal sold to cement producers, fertiliser, paper. To stabilise gasoline prices, the finance ministry will have to use flexible tax tools, fees, and price stabilisation fund.
Also, Dung directed the State Bank of Vietnam to continue operating monetary policy initiative and flexibly, ensuring the growth of credit and liquidity at a reasonable level; to gradually reduce lending interest rates, operating flexible exchange rates, ensuring macro-economic balance, to encourage exports and increase foreign currency reserves, to review and evaluate the management of prevailing currency and credit regulations to take the necessary adjustment on the principles of safety credit – banking system to promote business development.
Dung once again stressed that the central bank must study to have an appropriate policy and mechanism to direct commercial banks to withdraw money out of circulation quickly to reduce pressure on prices, especially at the end of this year when the volume of payments for works and projects are forecasted to be made with high density and New Year festival when the amount of bonus and salaries are paid in large quantities.
The Ministry of Agriculture and Rural Development must direct the Vietnam Food Corporation to ensure food and organise food retail system timely to meet the food needs of people, paying attention to urban areas, industrial zones, densely populated and disaster areas, flooding, not letting the lack of goods, the sudden price rise.