CG 2011: Recovery & Stabilization of Macro-economy in Focus

The Mid-Year Consultative Group (CG) meeting this year is focusing on discussions on the following topics: Recovery and stabilization of macro-economy with such specific issues as updating on the implementation status of Resolution 11, finance and monetary issues, fiscal and budgetary transparency, public investment efficiency and performance of state owned enterprises; protecting the poor against macro economic instability, especially such issues as social impacts on the poor, or protecting operations of small and medium enterprises; anti-corruption and listening to the report of aids effectiveness forum.

 

There were changes in the economic situation of Vietnam in the first months of the year. Price of some essential goods and inflation rate went up sharply, foreign exchange rates changed and difficulties emerged in some social and economic areas, which affected, to some extent, the people’s life. All of those factors have been increase the pressure on the macro economy.

 

Addressing at the meeting, Mr. Vo Hong Phuc, Minister for Planning and Investment, stressed “The Government of Vietnam has put on the top of its agenda such key objectives as inflation control, macro economy stabilization, ad social security. The Government has issued Resolution No. 11 with 6 solutions in order to implement these objectives. It is also guiding ministries and agencies to implement these solutions in a synchronous ad timely manner, and the solutions now bring about effects, increasing the confidence of the people and international communities inside and outside the country in the successful development of our economy.”

“Vietnam’s success at reducing poverty is also threatened by macroeconomic instability – given that significant numbers of the population that have moved out of poverty still live very close to the poverty line. Inflation has particularly adverse impacts on the poor and near-poor. It is important to get inflation under control. The current situation also highlights the importance for Vietnam to develop a modern Social Protection system that will protect those most in need, also to protect large numbers of Vietnamese from being pushed back into poverty as a result of rapid price increases, also other shocks such as job loss or natural disasters. This is major task ahead for Vietnam,” said Mrs. Victoria Kwakwa, World Bank Country Director for Vietnam.

 

The meeting finishes on June 9^th, 2011.