State to pump VND21 trillion a month into economy: Deputy PM

On the morning of June 15, the last day of working of the current session of the National Assembly, Deputy Prime Minister Nguyen Xuan Phuc, on behalf of the Government, replied to questions raised by NA deputies concerning a number of issues relating to the 2012 socio-economic plan.

At the meeting, Deputy PM spoke to 128 National Assembly deputies who sent 227 questions directed to the Deputy PM and other Government members. In two days, four ministers and 10 members of the Government directly answered questions from National Assembly deputies.

Workers in Viet Tien textile factory

On the question of bringing about macro-economic stability, taming inflation, and removing difficulties for enterprises to ensure stable growth, the Deputy PM said that the economy was gradually overcoming the most difficult period, although there are many obstacles and challenges ahead.

He repeated the Government's determination to achieve the goal of stabilization of macro-economy and curbing inflation.

He also presented the National Development Plan to promote business development, strive to reach GDP growth target in 2012 to about 6 percent, and keep inflation at 7-8 percent as stipulated in the NA Resolution.

In the first five months of 2012, about 22,000 enterprises have shut down or dissolved, up by 9.5 percent over the same period in 2011. However, in June, the number of newly registered enterprises was higher than ones   that shut down, said Deputy PM Phuc.

Inventories have been declining, from 34.9 percent to 32.1 percent from March and April and 29.4 percent in May 2012, he said.

In helping businesses face difficulties, the Government has implemented practical measures to remove the shortage of capital and settle bad debts. The Government also seeks means to improve credit growth, strive to increase average credit interest to about 2 percent per month in the last 6 months of 2012 and ensure credit at about 12-13 percent.

Thus, on an average the state capital will pump about VND21 trillion each month into the economy from now until the end of 2012, along with increased credit from commercial banks. These two factors will contribute to business development and boost economic growth, by increasing the purchasing power and settling inventories of businesses and enterprises.

Deputy PM Phuc said that State-owned enterprises are an important tool for macro-economic regulation. However, several corporations are not doing their role to support economic development, with some corporations and giant companies showing losses, wastefulness, violation of laws, or lack of effective management and misuse of capital.

The Prime Minister has now directed relevant organs to strictly handle cases of violation, capital loss, waste in businesses, corporations, as well as hold irresponsible individuals, Phuc said.

On the other hand, the Government is implementing various measures to ensure that giant businesses work efficiently and improve their performance.

Source SGGPOL, Translated by Dan

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