The resolution defines specific targets related to seven groups of solutions to manage the national economy in the context of complex changes in the global economy, the high inflation in the region and increase of input materials.

Meanwhile, prices of electricity and petrol have not followed their increase and have to be adjusted. The government must loosen the monetary and fiscal policies to prevent economic downturn and maintain high growth rates.

Domestic production and people’s living standards have been affected by natural disasters and bad weather which pushed the consumer price index in the first two months of this year up by nearly 3.8 percent, an increase of 12 percent over the same period last year.

The municipal and provincial leaders agreed to focus on curbing inflation, stablising the macro-economy, and ensuring social welfare.

Speaking at the conference, Prime Minister Nguyen Tan Dung proposed some additional solutions to keep the credit growth under 20 percent, the total payment methods under 15-16 percent and promote the development of agriculture, exports and supporting industries.

He asked the State Bank of Vietnam to decrease the interest rates to a reasonable level and adjust the foreign exchange rates following the changes in the market.

The Ministry of Public Security is asked to survey the foreign exchange market and handle the illegal currency exchange.

He confirmed that in 2012 the government will not allocate resources from the State budget or government bonds to projects not related to natural disasters prevention or pour more capital into projects that are supposed to be completed this year.

The PM stressed the importance of reducing the imports of products that are already manufactured domestically and keeping the import over export ratio under 16 percent.

He asked the Ministry of Agriculture and Rural Development to expand the land used for agricultural production to mitigate rapid growth of food prices.

Municipal and provincial leaders were also asked to control the prices of essential commodities, including rice, petrol, medicine and milk to avoid speculation, dollarisation and gold smuggling.