Government resolves economic obstacles

(VOVworld) – Vietnam’s economy has seen some encouraging signs since the beginning of the year. These positive signals show that the macro-economy has been stable, creating favorable conditions for achieving the government’s annual target of GDP growth of 5.5% and inflation of less than 7%.

Government resolves economic obstacles  - ảnh 1

Since ministries and sectors at all levels implemented resolutions by the National Assembly and the Government on controlling prices and boosting production, Vietnam’s socio-economy has seen positive results. The total means of payment by January 21 was estimated to have increased 0.17% since December. The economy’s credit balance was up 10% from the same period last year. Vietnam recorded an export surplus of 200 million USD while the export revenue reached 10.1 billion USD, an increase of 43.2%. A stable monetary market and reduced credit interest rate have eased business difficulties. In January, CPI rose 1.25% above the previous month, matching the average growth in previous years. But Minister and Head of the Government Office, Vu Duc Dam, is cautious: "The National Assembly approved a plan to achieve a higher growth rate and lower inflation than last year. In 2012 we successfully held inflation under 7%. January’s 1% inflation is alarming. We have to be careful and tighten management and enhance collaboration among agencies to achieve the yearly target of 5.5% GDP growth and less than 7% inflation."

One of the important factors affecting the economy’s stability is the heating up of the real estate market. The government tasks the Ministry of Planning and Investment with reviewing all construction companies and surveying the property market. In January, the government issued a resolution asking the State Bank of Vietnam to allocate 20 to 40 trillion VND at a maximum term of 10 years to help commercial banks provide housing loans. Commercial banks are required to reserve at least 3% of their loan funds to help low income families buy or rent houses. Dam says: " Government’s measures to support the property market have taken into consideration two unique characteristics of the property market compared to other countries. Vietnam is a developing country and the property market is associated with other sectors such as construction and materials production. Vietnamese have a strong tradition of home ownership. The government’s policies on finance, land, planning, and construction are aimed at resolving market obstacles and helping less fortunate people obtain a house. The government develops schools and hospitals by shifting the primary purpose of certain real estate projects." 

Nguyen Dong Tien, Deputy Governor of the State Bank of Vietnam, says the Bank is planning to form a National Housing Rerenting Company and will collect opinions from relevant ministries and sectors on the project.

The Ministry of Industry and Trade has reduced import taxes on coal and other commodities. In January the Ministry imposed measures to reduce inventories to help businesses stabilize production, boost the domestic consumption market, seek new export markets, and tighten market management.

The socio-economic situation in January has seen positive signs. Government management will help stabilize the macro-economy and fulfill the NA’s resolution to obtain a GDP growth of 5.5% and inflation of less than 7%. 

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