The Government convened its regular meeting on September 25-26 to evaluate socio-economic performance in the first nine months of 2011 and review the efficiency of State-owned enterprises over the past five years.

During the meeting, the Cabinet members focused on analyzing the causes of rising inflation and put forth ultimate measures to cool down the inflation fever.

First nine month socioeconomic performance

The Cabinet members were unanimous that socio-economic performance has become stable with inflation put under control and consumer price index fell down to less than 1% for the second consecutive month.

Industrial production continued growing and export turnover hit US $70 billion, tripling the preset target.

GDP expanded by 5.76% in the reviewed period, foreign arrivals increased by 15.5%, and foreign investment inflow rose by 0.2%.

Agriculture-forestry-aquaculture sector posted a growth rate of 2.39%, owing to huge investment, according to Minister of Agriculture and Rural Development Cao Đức Phát.

Besides positive signals, the Cabinet members pointed to a number of challenges that remain ahead like a high trade deficit, difficulties in credit access by businesses, and high prices of input materials.

In the Q4, the periodical demand for imports and foreign currency would put greater pressure on efforts to curb inflation, noted Deputy PM Vũ Văn Ninh.

Dealing with the situation, the Government said it will continue pursuing tightened and cautious monetary policy.

It will provide secure sources of capital to encourage production, giving priorities to agricultural and rural development, power generation, and assistance to small and medium sized enterprises.

Meanwhile, Minister of Public Security Trần Đại Quang proposed the Government to intensify the execution of administrative disciplines, strictly handling goods speculation.

For inefficient SOEs

The Cabinet members agreed that over the past five years, the majority of State-owned enterprises gained profits and contributed  significantly to the State budget, as shown  by PetroVietnam, Vinacomin, Vinafood 2, and SaigonTourist.

Many corporations and groups have taken the leading role in producing and distributing essential goods and services, and stabilizing prices in the local market.

However, legal regulations on the State management over the SOEs remain absent and inspecting and auditing these SOEs are still overlapped, the Government said.

The Cabinet members stressed the need to develop mechanisms and policies for the SOEs, rearrange them, and resolutely terminate the operation of the inefficient SOEs.

The fight against inflation remains top priority

Concluding the meeting, PM Dũng reiterated the Government’s consistent determination of curbing inflation, stabilizing macro-economy, ensuring social welfare, and striving for the growth rate of around 6% this year.

The Government chief requested the State Bank of Vietnam to focus on addressing bad debts, especially loans for real estate, and take measures to pull down interest rates.

He also asked inferior levels to review and improve the efficiency of public investment, and focus capital on urgent projects, including power plants.

Due attention should continue to be given to the implementation of social welfare policies, he said

Regarding the SOEs issue, PM Dũng entrusted the Ministry of Finance to collect the Cabinet members’ comments and draft a Project on renovating SOEs.

He also ordered the SOEs to withdraw their capital from the fields that are out of their stipulated key business line./.

Hai Minh

VGP