Members of the government agreed that the resolution has proved the most effective in the management of money, credit, interest rates, exchange rates, foreign currencies, and gold, which are gradually entering into stability.

For the past four months, Vietnam’s credit growth stood at only more than five percent, making it possible to attain the target of curbing credit growth at below 20 percent by the end of the year.

Reducing credit growth and cutting public investment are two important channels to decrease demand and contain inflation.

Statistics show that ministries, sectors and localities reduced a total amount of nearly VND97.8 trillion or about 10 percent of the total social investment for 2011. In addition, they cut over VND3.85 trillion for frequent spending.

Meanwhile, state budget incomes in the first four months of 2011 rose by more than 37 percent of the estimated, and exports increased 35.7 percent against the same period last year. Despite tightened credit, industries, agriculture, services and tourism saw positive growth, especially services (22.7 percent).

The cabinet members identified major problems in socioeconomic management, including April inflation rising 9.4 percent over December 2010, and high interest rates that continue to cause difficulties to production in the time to come.

Traffic accidents increased with regard to the numbers, fatalities (33.4 deaths per day on average), and the injured. Trade deficit surged by over 18 percent and it’s impossible to limit the import of some nonessential goods.

To conclude the session, PM Dung requested ministries, sectors, and localities to persistently carry out measures set in the government’s Resolution 02 and Resolution 11 with a view to curbing inflation, stabilizing the macroeconomy, ensuring social security, and maintaining rational growth.

PM Dung stressed that a new level of prices for commodities such as petrol, oil and electricity is accepted but it must be transparent and closely connected to efforts to control and stabilize prices and to fight speculation. He also called for measures to manipulate the levels of mobilizing capital and ceiling interest rates in a rational and unified manner with resolute punishment given to any violations by banks. Credit organizations are also to be closely supervised so that they comply with regulations on depositing, lending, and credit quality.

The government leader also asked ministries, sectors and localities to channel state investment to effective projects so they can be completed within this year. The Ministry of Finance is required to adjust types of domestic taxes to encourage the manufacture of automobiles, motorbikes, electronics, and farm produce

The Ministry of Industry and Trade will seek to limit the import of nonessentials, particularly cars.

The Prime Minister also proposed policies be worked out to help low income earners such as seasonal labourers and workers at private enterprises. He asked the Ministry of Public Security and Ministry of Transport to take stronger action against people using alcohol before driving motor vehicles and to tighten the training and issuing of driving licenses to drivers of buses and container trucks.

Also at the April regular session, members of the government heard and presented ideas on an action programme to materialize the socioeconomic development strategy for the 2011-2020 period and orientations for developing the country from 2011-2015.