They were unanimous with a Government report that initial progresses in curbing inflation, ensuring macro-economy stability and social welfare were due to the Government's synchronous and drastic measures to address these problems.
They said the effective implementation of Government resolution 11 had helped the country manage monetary and credit growth, stabilise market prices, cut public investment and save State budget spending.
They, however, frankly pointed out shortcomings and weaknesses that needed to be addressed, including the increase of consumer price index, high interest rates causing difficulty for enterprises and farmers to access bank loans, continued trade deficit, unimproved living standards, especially among rural and mountainous people and low GDP growth among others.
At a review session of the country's socio-economic performance in the first six months, deputies discussed measures for the second half of the year, and asked the Government to curb the high inflation, making it a primary task for the remaining months of this year.
Dao Tan Loc, NA deputy of central Phu Yen Province, said high inflation was negatively impacting people's production and trust in the Government, which was influenced by the world economy and internal development situation of the national economy.
He said high inflation and low Gross Domestic Products, GDP, were key factors surely impacting the country's development this year and even next year.
The dark sides of tight monetary and fiscal policies were cutting down production and job opportunities, causing people many difficulties, Loc said.
He also forecast that high inflation and natural calamities would happen in the remaining months, thereby making efficient and effective measures a necessity for the country.
Nguyen Tien Sinh, a NA deputy from northern Hoa Binh Province, asked the NA to invest in developing agriculture and rural areas, issue policies to speed up agriculture and sustainable growth.
He said high inflation had most negatively impacted farmers, thereby the Government should support them, and the agriculture sector.
Yet, Sinh also noted that the country's fight to rein in inflation had also pinched monetary and credit growth as well as high interest rate. The situation had forced small-and medium-sized enterprises to bear the brunt of tightening bank loans.
Although agreeing with the Government that it was essential to tighten monetary and credit growth in the face of high inflation, deputies Dao Tan Loc (Phu Yen) and Huynh Thanh (Gia Lai Province) said it was merely a temporary solution which would cause a standstill in production if the Government did not have effective measures to help enterprises and farmers borrow bank loans.
Huynh Ngoc Dang, a NA deputy from Binh Duong Province, meanwhile, disagreed on the grounds that an economic stimulus package was a major agent causing high inflation.
According to his analysis, flaws in the economic structure and growth model plus weak management have led to high inflation.
"It is necessary to determine the actual reasons behind high inflation to effectively address the problem," Dang said.
Dang Thi Ngoc Yen, a NA deputy from southern Long An Province, said measures should be taken to reduce trade deficit with China. She cited a statistic that China accounted for 94.4 per cent of Viet Nam's total trade deficit in 2010.
She said the price of many consumer products like pork, vegetables and fruit doubled, negatively impacting lives, particularly farmers, low-income earners and workers at foreign invested companies.
Deputies Tran Ngoc Vinh and Bui Sy Loi said if the increase of CPI and food prices continued, it would adversely impact not only the economy, but also the society.
"Hundreds of strikes occurred in the first six months, 83 per cent of which were at foreign invested companies," deputy Loi said.
Sharing the same concerns with other NA deputies, former governor of the State Bank of Viet Nam, Cao Sy Kiem warned that price control would face many difficulties in the remaining months of this year due to natural calamities and increasing demand for consumption.
The NA deputy said the new Government needed a more concrete management orientation, and policies and tools that avoided contradictions.
At the session, NA deputies also expressed a consensus on measures to be taken by the Government in the second half of this year. They asked the NA to continue investing in infrastructure projects in rural and mountainous areas to improve the living standard of farmers and ethnic people.
Source: VNS
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment