“These are not only urgent short-term tasks for 2011 but also important goals accomplishments for the next several years,” the Politburo said in Conclusion No. 02-KL/TW signed on March 16 by Truong Tan Sang, Politburo member and permanent member of the Party Central Committee Secretariat.

For 2011, the Politburo has asked sectors and branches at all levels to control inflation and focus less on achieving higher growth rate than in 2010 in order to create a foundation for the country to achieve a higher growth in the later years of the five-year plan. 

The Politburo said it will issue related follow-up instructions in mid-2011 based on the results of the first six months, adding that any adjustments to the 2011 plan and targets have yet to be discussed. 

One of the main solutions required is a tight, cautious and flexible monetary policy for constraining inflation, which will help stabilise the value of the Vietnam dong (VND), and gradually increase foreign reserves. 

At the same time, mechanisms and policies for the management of foreign currency (USD) and gold markets should be formulated quickly to prevent speculation and illegal trading. 

The Politburo asked relevant agencies and sectors to work out roadmaps and take appropriate measures for each phase to ensure the legitimate interests of those who possess USD and gold as their assets.

These relevant agencies and sectors must take into account businesses’ and individuals’ legitimate needs for USD and gold to avoid triggering psychological shocks that may cause social instability. They should also encourage and create conditions to attract overseas currency resources, and reorganise the gold market. 

The Politburo ordered simultaneous measures to reshape the real estate market and prevent it from turning into a factor that can spark high inflation and a “bubble” economy. 

Controlling and restraining investment flows into the real estate market requires appropriate strategies, steps and solutions, the Politburo noted.

These measures must not only help fight speculation in the market, but also steer it away from possible shocks that may freeze it and cause a domino effect on the credit organisation network and society. 

Regarding the reform of State-owned businesses, the Politburo underlined the need to step up the equitisation of State economic groups and corporations, requiring them to focus on developing their key product lines. 

In addition, the Politburo asked sectors, branches and localities to effectively implement the promulgated social welfare policies and keep abreast with the situation so as to promptly provide support for disadvantaged groups, particularly those living below the poverty line and low-income earners, who are hardest hit by inflation and price adjustments.