Politburo outlines economic stability in 2011

Vietnam News Agency file photo for illustration

The Party Politburo has made public its expectations on the country’s socio-economic performance in 2011, identifying containing inflation, stabilising the macroeconomy, and ensuring social welfare as top priorities for sectors and branches at all levels.

“These are not only urgent short-term tasks in 2011 but also important 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.

In 2011, the Politburo has asked sectors and branches at all levels not to over-emphasise the necessity to achieve a GDP growth rate higher than 2010, to prevent inflation from soaring and create a firm premise for the country to post higher growth rates in the last years of the five-year plan.

The Politburo said it will issue related follow-up instructions in mid-2011 on the grounds of the results gained in the first six months, adding that any adjustments for the 2011 plan and targets are yet to be discussed at this time.

One of the main solutions required to be taken is to apply a tight, cautious and flexible monetary policy for constraining inflation, helping to stabilise the value of the Vietnam dong (VND), and step by step increase foreign reserves.

At the same time, mechanisms and policies on the management of foreign currency (USD) and gold markets should be quickly formulated 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 people’s legitimate needs of USD and gold to avoid triggering psychological shocks that may cause social instability, while encouraging and creating conditions for activities to draw overseas currency resources, and reorganising the gold market.

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

Controlling and restraining the investment flows into the real estate market need 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 the market and cause domino effects on the credit organisation network and society.

On 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.

Regarding the works to ensure social welfare, the Politburo asked sectors, branches and localities to competently implement promulgated social welfare policies and keep abreast with the situation so as to promptly provide support for disadvantaged groups, including those living above the poverty line and low-income earners, who are mostly affected by inflation and price adjustments.

Source: Vietnam News Agency

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