NA deputies urge tougher fight against inflation
By Ngoc Lan - The Saigon Times Daily
HANOI – National Assembly (NA) deputies during the first discussion day of the second sitting of the 13th NA urged the Government to focus on controlling inflation and interest rate reduction instead of high growth as earlier suggested.
Most NA deputies expressed their concerns over the gloomy outlook of the global and local economy in the near future.
Deputy Mai Huu Tin from Binh Duong Province said the U.S. government might provide another stimulus package ahead of its election year while China, who is in competition with Vietnam for export markets, had pledged to give support to the European Union to help it cope with its protracted debt crisis.
As a result, Vietnam has very few chances to develop export markets in the near future.
Meanwhile, the Government at any cost has to curb the inflation rate to under 10% next year, Tin said.
Deputy Phuong Thi Thanh from Bac Kan Province shared Tin’s concerns.
“Although the Government sets 2012’s GDP (gross domestic product) growth rate target at 6-6.5% to solve employment problems and ensure social security, it is more urgent to curb inflation at below 10% from next year. If possible, I think it is a great success even if the Government fails to meet the 6% GDP growth rate,” Thanh said.
Deputy Truong Minh Hoang from Ca Mau Province said the ultimate target is to create unanimity in the country for an inflation fight next year, reducing the figure to a single-digit rate in 2012 and to 5-7% in 2015.
“I suggested not focusing on GDP growth rate in 2012 and accepting it lower than this year’s growth,” Hoang said.
Tin urged the Government to face up to the large number of ailing small and medium-sized enterprises in Vietnam. “If there is no effective support such as lower lending rates at under 15% and inflation at under 10% per annum, I’m afraid that they will not survive another year and this will cause critical consequences to the economy,” Tin added.
Deputy Nguyen Cao Son from Hoa Binh Province asked the Government to create solutions for cutting banks’ lending rates to help enterprises maintain production in the final months of the year. High lending rates will cause a danger of goods supply shortage, Son said.
Deputy Tran Du Lich from HCMC said the Government should manage monetary policy tightly and cautiously and avoid unexpected changes. Lich quoted a report of the Financial and Budgetary Committee that revealed public investment rose 15% despite the Government’s policy of investment reduction this year.