At the Government's regular press conference held early June, Minister and Chairman of the Government Office Nguyen Xuan Phuc said the adoption of the Resolution 11/NQ-CP has produced positive results, particularly financial and monetary policy. However, threats of high inflation and large trade deficit are always a daunting challenge for the Vietnamese economy. Thus, the Government decided to revise up inflation target to 15 percent this year and lower growth forecast to 6 percent.
The report submitted by the Ministry of Planning and Investment showed that budget revenues in the first five months of this year were relative good, enough to cover estimated expenditure plans and ensure the progress of State-funded projects. The State Budget was forecast to fetch approximately VND277.2 trillion, equal to 46.6 percent of the target set for the whole year, while it was estimated to expend VND299.8 trillion, or 41.3 percent of the full-year estimation.
State Bank of Vietnam (SBV) Governor Nguyen Van Giau said credits for non-manufacturing sectors fell from 18.87 percent to 16.91 percent of banks’ total loans in May while credits for manufacturing sectors rose to 25 percent.
Nonperforming loans (NPL), especially bad debts related to real estate sector, are being closely monitored by banks. The central bank will continue with proper monetary and credit policies to cap credit growth at 20 percent or lower in 2011 while the total means of payment was expected to increase 15-16 percent, Mr Giau said.
Mr Nguyen Thanh Bien, Deputy Minister of Industry and Trade, stressed the country’s trade deficit would continue to be controlled as more measures would be taken to restrict importation of luxury goods like automobiles, electronics, fashion products and cosmetics. Currently, the Ministry of Industry and Trade is collecting opinions from other ministries and businesses to have better specific measures to restrictions of these items.
Mr Cao Viet Sinh, Deputy Minister of Planning and Investment, said, implementing the Government-backed Resolution 11, the Ministry of Planning and Investment has issued documents guiding the implementation of solutions pertaining to State-funded investments, and organised inspection panels.
To date, all ministries and localities have seriously carried out measures to review, reduce and reschedule investment capital in accordance with the spirit of the Resolution of the Government and the guidance of Prime Minister.
Ministries, State agencies, localities and State-owned corporations announced to reduce VND80,550 billion of investment capital in 2011, or about 9 percent of total social investment capital.
Much-concerned incident in May was the Chinese marine surveillance vessels on May 26 cut the exploration cable of Binh Minh 02 Ship owned by the Vietnam National Oil and Gas Group (PetroVietnam) when the ship was conducting seismic surveys on the continental shelf of Vietnam. Minister Nguyen Xuan Phuc said Vietnam will do its best to protect territorial waters and territorial integrity of the country. The Government will have necessary measures to ensure safety of domestic and foreign investors operating in Vietnam’s exclusive economic zones.
Binh Minh 02 Ship will continue conducting oil and gas exploration and exploitation activities on the continental shelf of Vietnam.
Mr Cao Duc Phat, Minister of Agriculture and Rural Development, said his ministry will assist fishermen catching fish in Hoang Sa (Paracel) and Truong Sa (Spratlys) areas and the first tasks are to support them with fresh water, fuel and medical service. In addition, the ministry will purchase fish at sea to help fishermen reduce travel costs amid rising oil and gasoline prices. He also presented on the plan for establishment of fishery control which has been submitted to the Government for approval.
Huong Ly
Vietnamese
