The Government reviewed socioeconomic growth in November and the past 11 months and introduce measures to stabilize prices and market for the rest of the year and during Tet (Lunar New Year) next February at a regular monthly cabinet meeting on December 1-2.

The cabinet agreed at the meeting chaired by Prime Minister Nguyen Tan Dung that November and the past 11 months of this year saw positive socio-economic development and the economy has recovered rapidly in the context of global economic slowdown.

Industrial production rose by 13.8 percent, and total retail sales and services saw a year-on-year increase of 25 percent in the past 11 months.

The hospitality industry also posted an increase of 36.5 percent in the number of foreign arrivals.

Exports amounted to US$64.3 billion, a 24.5 percent rise from the same period last year, and a 400 percent increase compared to the target.

Trade deficit reached approximately US$10.7 billion in the past 11 months, equal to 16.6 percent of export revenues in the period.

The country’s GDP was estimated to grow by over 6.7 percent this year.

The Government implemented many timely measures to overcome difficulties caused by repeated natural disasters and complex market price chaos.

CPI up

Pricing was the hottest issue at the meeting as consumer price index (CPI) in November climbed by 1.86 percent over the previous month, the highest rate in the past nine months.
 
The CPI of November reached 9.58 percent, creating negative impacts on production and people’s lives.
 
CPI in the past 11 months almost hit the double-digit mark at 9.58 percent.
 
Ministers said global prices of many goods including gold and oil had a bad impact on the national economy.
 
They agreed that recent fluctuation in the US dollar price boosted gold reserves, leading to a hike in gold price.
 
Solutions to stabilize market
 
PM Dung critical of cabinet members for their failure to take firm measures on inflation control and market stabilization in line with the Government’s resolution No. 18, causing price hikes and negative impacts on production and living conditions.
 
He ordered ministries and local agencies to focus on implementation of measures to curb inflation, stabilize macro-economy, prices and the market.
 
The PM also asked his staff to continue to boost production of goods and supply, and ensure a stable market during the festival and the first quarter of 2011.
 
The Government leader instructed ministers, local authorities and industrial executives to take measures against illegal speculation of goods, encourage businesses to take part in price stabilization by expanding sales networks and bringing goods to remote areas.

He called on the banking system to issue a flexible policy on bank interest rates and foreign exchange rates in an effort to keep control of the monetary market amidst the unpredictable international ups-and-downs of the gold and greenback value.
 
He ordered the Central Bank to coordinate with municipal and provincial People’s committees to keep a close eye on things to prevent illegal trade and speculation of gold and foreign currencies which corner the market, and give punishments to speculators.
 
The National Advisory Council on Financial and Monetary Policies was asked to recommend concrete measures on handling the foreign exchange and bank interest rates suitable to the current context.

The two-day meeting also discussed administrative reforms and anti-corruption battle.

Source: SGGP