Curbing Price Hike, Withdrawing Money in Circulation

To ensure the economic growth rate of some 6.5 % and the consumer price index of about 8 % in 2010, Prime Minister Nguyen Tan Dung has recently issued the Instructions No. 1875/CT-TTg, requesting the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the Ministry of Health and the Ministry of Construction to complete and announce production development plans and distribution systems of essential products like gasoline, fertilisers, construction steel, cement, food and medicines. The deadline for the plans to be submitted is the fourth quarter of 2010.

 

The Prime Minister asked the Ministry of Industry and Trade to coordinate with relevant ministries, branches and localities to study and issue regulations on corporate responsibilities in ensuring reserves for circulation, specially enterprises with large market shares.

 

He ordered the Ministry of Finance to instruct competent bodies to tighten control over price-constituting factors and pricing of essential goods, specially medicines, dairy products, construction steel, building materials and cooking gas; to regulate and stabilise prices of electricity and coal sold to cement, fertiliser and paper producers; to flexibly utilise tax and fee instruments and stabilisation funds to valorise prices of petroleum products.

 

The State Bank of Vietnam is told to effectuate suitable policies and regimes to allow commercial banks to withdraw money in circulation to diminish price-rising pressures.

 

The Ministry of Agriculture and Rural Development will instruct State-run food companies to ensure food supply for people, specially in cities, industrial parks, populous areas, disaster-stricken localities, to prevent sudden price hikes due to short supply.