Gov’t enforces effective policies

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Hanoi Times English - 36 month(s) ago 2 readings

The Hanoitimes - Led by the Prime Minister, the Government made an array of successes in managing the economy, reining in inflation, stabilizing the macro-economy, developing production and ensuring social security.

The Hanoitimes - Led by the Prime Minister, the Government made an array of successes in managing the economy, reining in inflation, stabilizing the macro-economy, developing production and ensuring social security.

In 2011, the country was challenged by numerous external difficulties, which were beyond expectations. Prices of food, crude oil and raw materials o­n the international markets rocketed; the stock market plummeted; public debt crisis spread to a large number of countries in the globe; global economic growth slowed down and high inflation appeared in almost all countries over the world. The outside problems caused negative impacts o­n the domestic economy.


Inside, inflation and interest rate soared. Trade gap was wider. Deficits arose in the balance of international payments. Decline foreign reserves put more pressure o­n the monetary and exchange markets. Gold prices fluctuated unusually. Production encountered numerous difficulties. The economy faced instability.


Dealing with these difficulties, Prime Minister Nguyễn Tấn Dũng o­n February 24, 2011 released Resolution 11/NQ-CP o­n key solutions for controlling inflation, stabilizing the macro-economy and ensuring social welfare.


* Curbing inflation


The Resolution stipulated that the current flexible monetary policy needs to be carried out in a close and cautious manner to harmoniously combine with the fiscal policy in a bid to curb inflation, maintain a credit growth at 20%, and realize 15-16% of total means of payment. It also referred to the implementation of a tight fiscal policy and the cut of State budget and overspending.


Thanks to these timely and sound measures, CPI growth rate decreased since May, 2011 and stood around 18.13% for the whole year.


Interest rates were declining too. Exports surged 33%. Trade gap saw the smallest rate over the last five years.


* Expanding business activities


The Government deployed numerous solutions, including tax exemption and cut for individuals and enterprises.


Typically, 30% of enterprise orcorporate income tax was exempted for small and medium-sized enterprises; 30% of EIT was cut for enterprises which use intensive labors in the fields of production, processing and 50% of value added tax was reduced for some personal income.


Besides cutting public investment, the Government instructed relevant agencies to produce essential commodities for production and consumption; assist agro-forestry and fishery production; encourage advantageous and high value added products; speed up key projects and promote PPP models.

Vietnam posted a growth rate of 5.89% in 2011. The growth rate of the agro-forestry-fishery sector expanded 4%; that of the industry and construction sector, 5.53%; services, 6.99%; and industrial production value, 6.8% against 2010.


* Outstanding achievements in social welfare


In the context of price hikes, natural disasters and epidemics, the Government focused its attention o­n ensuring social welfare.


Social resources were mobilized for poverty reduction, job generation, and assistance to natural victims, poor people, low-income earners and social beneficiaries.


Typically, budget spending for social welfare activities increased by 20%, totaling around VND 84 trillion. Over 1.54 million jobs were created. The unemployment rate in urban areas was o­nly 4%. Poverty rate dropped 2%.


The Government also made huge achievements in other areas like education and training, healthcare, culture, sports, information, science-technology, environment protection, administrative reform, anti-corruption, foreign diplomacy, national defense and security, creating a foundation for people to believe in the leadership of the Party, State, Government to steer the country to move forward.

VGP

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