Government’s Resolution No. 11 proves effective

(VOV) – Prime Minister Nguyen Tan Dung presided over a cabinet regular meeting on April 28 and 29, which focused on the effectiveness of the government’s Resolution 11 implemented over the past two months and emerging problems that need addressing.

Members of the government agreed that the resolution has proved the most effective in the management of money, credit, interest rates, exchange rates, foreign currencies, and gold, which are gradually entering into stability.

For the past four months, Vietnam’s credit growth stood at only more than five percent, making it possible to attain the target of curbing credit growth at below 20 percent by the end of the year.

Reducing credit growth and cutting public investment are two important channels to decrease demand and contain inflation.

Statistics show that ministries, sectors and localities reduced a total amount of nearly VND97.8 trillion or about 10 percent of the total social investment for 2011. In addition, they cut over VND3.85 trillion for frequent spending.

Meanwhile, state budget incomes in the first four months of 2011 rose by more than 37 percent of the estimated, and exports increased 35.7 percent against the same period last year. Despite tightened credit, industries, agriculture, services and tourism saw positive growth, especially services (22.7 percent).

The cabinet members identified major problems in socioeconomic management, including April inflation rising 9.4 percent over December 2010, and high interest rates that continue to cause difficulties to production in the time to come.

Traffic accidents increased with regard to the numbers, fatalities (33.4 deaths per day on average), and the injured. Trade deficit surged by over 18 percent and it’s impossible to limit the import of some nonessential goods.

To conclude the session, PM Dung requested ministries, sectors, and localities to persistently carry out measures set in the government’s Resolution 02 and Resolution 11 with a view to curbing inflation, stabilizing the macroeconomy, ensuring social security, and maintaining rational growth.

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