Vietnam PM Assures Stimulating Domestic Demand, Helping Local Businesses

Prime Minister Nguyen Tan Dung on November 13 assured lawmakers that the Vietnamese government has active measures to stimulate the domestic demand and give support hands to local businesses in the face of the global financial crisis, state media said.

 

PM Dung noted the government will tighten control over investment operations of state-owned corporations, support local businesses by taking flexible monetary policy, ensure tax rebate, extend tax payments as well as form credit guarantee fund for small and medium enterprises.

 

Regarding chronic power shortage facing Vietnam, Mr Dung said the government encouraged local and investors to invest into power generation but will maintain state monopoly over power distribution grids and systems.

 

Mr Dung ironed out a mountain of questions relating halting signing rice export contracts in April, May and June, saying it was a right decision and attributing it to the country’s food security and CPI stability amid natural disasters and epidemics.

 

This year, Vietnam expects to ship 4.7 million ton of rice valued at US$2.8 billion, up 4 per cent on year in volume with average price of US$600/ton.

 

The Vietnamese government leader also urged administrative reforms, environment protection.

 

At this session, Vietnam’s national assembly approved cutting the GDP growth target to 6.5 per cent and curbing inflation of 15 per cent for 2009 with state budget spending of VND491.3 trillion with state deficit of 4.82 per cent. (The People, Labor, Youth)