Dec 25, 2012

Vietnam - Vietnam party leader urges bank to ease business stress

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The Vietnam central bank must apply an appropriate interest rate policy and control bad debts to ensure the banking system's liquidity, while also helping businesses access loans.

The instruction was made by Party General Secretary Nguyen Phu Trong at a working session with key officials of the State Bank of Vietnam and representatives of commercial banks in Hanoi on Saturday.

While commending the central bank for its efforts to stabilise the macroeconomy, curb inflation and ensure social security, the party leader said the sector had to work out a detailed plan of action to continue restructuring the banking system in a firm and effective manner.

He stressed the central bank's important role in the context of a socialist-oriented market economy in Vietnam, saying that the bank must maintain a balance between exercising state management over monetary and banking affairs and conducting normal banking operations.

According to the central bank's report, over the past years it has introduced both strict and flexible monetary measures to contain inflation, stabilise the value of the domestic currency (Vietnamese dong), prevent the dollarisation of the economy, increase foreign currency reserves and improve the liquidity of credit institutions.

The Ministry of Planning and Investment plays an important role in implementing national socio-economic development plans and projects, Party General Secretary Nguyen Phu Trong said at a working session on Saturday.

The Party leader was reported that in the last two years the ministry had made significant contributions to realising the country's socio-economic development plan, while hewing closely to the Party National Congress' Resolution.

The ministry has worked on a total of 240 bills, decrees, resolutions and projects that provided a foundation for the Politburo, the National Assembly, and the government to promptly issue resolutions and decisions.

The ministry has also helped the government issue policies to attract foreign direct investment and official development assistance and use these funds efficiently.

Trong reminded the ministry to resolve overlapping plans, reduce ineffective investments and deal with barriers in investment capital licencing and registration. He also suggested concerned bodies set up statistical data on the mistry's role in the nation's socio-economic development.

News Desk 


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