Aiming for Anti-Inflation Targets Persistently, Stabilizing Macro-economy, and Maintaining Social Security

In Dong Nai, Deputy Secretary of Dong Nai Party Committee and Chairperson of Dong Nai People’s Committee Dinh Quoc Thai presided over the meeting.

The meeting was attended by all departments and sectors.

In the first half of 2011, thanks to the efforts of the ministries, sectors, and local authorities to curb inflation, to stabilize the macro-economy, GDP in the first half of 2011 hits by 5.57 percent.

- State budget revenue in the first half of 2011 is estimated at VND46.7 trillion (or US$2.22 billion).

- Total social investment is estimated at VND362 trillion (or US$17.23 billion) down by 7.2 percent over the same period.

- Exports turnover is estimated to total US$42.33 billion, up 30.3 percent over the same period last year.

- Currency and gold trading market was stable.

- Exchange rate was under control in an acceptable range and foreign currency reserves grew higher.

- The credit growth rate hits by 6.05 percent.

- Consumer price index (CPI) rises by 16.03 percent compared with the same period. CPI in June rises by 1.09 percent over the previous month and has been the lowest increase since early 2011.

- Public investment declined by 9 percent compared with total investment.

Dong Nai People's Committee is attending the online meeting concerning socio-economic situation in the first half of 2011 held by the government

The economy maintained a relatively high growth rate.

- Agricultural production value was on the increase and continued to grow steadily.

- Import-export turnover continued to increase three times as many as planned.

- Total retail sales of goods and services increased heavily over the same period.

In spite of a difficult socio-economy and a public investment reduction according to the government’s Resolution no. 11, which is urgently being implemented, investment poured into poverty reduction, agriculture, farmer, rural areas programs were kept.

- Social security was paid much attention to and showed positive changes.

- Fighting against corruption continued to be strengthened.

- Defense was beefed up and political security and social order and safety were maintained.

- Foreign affairs achieved good results.

Though more positive results were achieved, socio-economic situation in the first half of 2011 was still faced up with many a difficulty and problem as follows:

- Inflation declined but stayed high, especially in a context that there was a negative impact of rising fuel and food prices.

- Growth rate was low and deficit was still high.

- Production and business activities were faced up with difficulties.

- Interest rates remained high, affecting production and business activities.

- Foreign investment attraction was on the decrease.

- Real estate market saw unexpected changes.

- Serious traffic accident rate remained high.

- Sanitation and food safety remained a pressing problem.

- Diseases in humans, domestic animals, and occurred in many parts of the province.

- Poor and low-income people’s lives faced with many a difficulty.

Accordingly, the government puts forward 10 groups of solutions in the second half of 2011 and gives priority to:

- Curbing inflation, stabilizing macro-economy, and maintaining social security.

- Keeping applying a tight monetary policy cautiously, controlling interest rate measures in a flexible way, controlling credit growth rate, and finding out a payment method that is in accordance with market changes.

- Maintaining an appropriate production and growth rate to ensure people’s income, creating employment as a pushing force to contribute to curbing inflation, stabilizing macro-economy, and maintaining social security.

Particularly, the government asks provinces to concentrate on directions, to strive to fulfill such required targets as curbing inflation between 15 and 17 percent and a GDP growth rate by 6 percent, to control credit growth rate by less than 20 percent and deficit by less than 16 percent, and to reduce the state budget deficit by less than 5 percent.

Reported by N. Thuong, Translated by Duy Minh