The Government’s tasks during the last months of 2012 are to continue curbing the inflation and stabilising the macro economy with the target of a GDP growth rate of 5.2 percent and an inflation rate of about 7 percent for the whole year.

Prime Minister Nguyen Tan Dung made the statement at the Government’s monthly meeting in Hanoi on September 5, which reviewed its work in August and discussed the country’s socio-economic situation in 2012 as well as development plan for 2013.

At the meeting, Cabinet members agreed that the socio-economic situation in August and the first eight months of this year continued to see positive changes in the right direction.

The monetary policy has been managed more flexibly, resulting in annual interest rates sharply falling by 4-5 percent, which was suitable to the inflation, the macro economy and the monetary market, they said, adding that efforts to remove difficulties for production and business activities have gradually proven effective.

However, they also said that the country’s socio-economic development still sees many difficulties and challenges in the remaining months of the year as exports growth is low, bad debts in the banking system are yet to be settled and the financial and monetary market still sees complicated development.

According to a draft 2013 socio-economic development plan presented by Minister of Planning and Investment Bui Quang Vinh, despite numerous difficulties and challenges, the development prospect for the next year is better than that of 2012.

This is an important foundation for the country to build and manage the development plan for 2013, an important year for the fulfillment of targets set for the 2011-2015 period, he said.

The overall objective for 2013 is to maintain a reasonable growth rate along with continuing stabilising the macro economy, restoring the business community and people’s trust in the investment and business environment and the stability of the economy, ensuring social security and welfare, and improving people’s living standards.

The country will expand foreign relations and boost integration to raise its position in the international arena; safeguard independence, sovereignty, unity and territorial integrity; and ensure political security, social order and safety.

The minister put forth two options for 2013 which project that the GDP growth will be 5.5-6 percent or 6-6.5 percent, and the consumer index price (CPI) growth will be about 7-8 percent, lower than or equal to that in 2012.

Concluding the meeting, Dung said that with efforts made by the whole political system and the business community, Vietnam has controlled inflation, stablised the macro economy and foreign exchange, increased exports and social investment, balanced the budget and maintained a constant growth rate.

However, the PM also pointed out the economy’s shortcomings and limitations such as the unsound macro economy, low credit growth, difficulties for businesses in accessing capital, and large inventory.

Regarding the 2013 plan, the Government leader asked relevant ministries and agencies to focus on stabilising the macro economy, preventing the recurrence of a high inflation rate and keeping the growth at a reasonable rate of about 6 percent.

The ministries and agencies should continue to speed up the economic restructuring with a focus on public investment, State-owned enterprises and the finance-banking sector, while ensuring social security and welfare and maintaining security and defence, Dung said.

He also stressed the need to continue thrift practice, especially in regular spending, pay attention to measures to mobilise resources of investment for development, and place petrol and coal prices under the market mechanism.

Source: VNA