11-14-08, 9:16 am

Hanoi (VNA) – Prime Minister Nguyen Tan Dung emphasized the dire need to boost exports and narrow the trade deficit to halt a slowdown of the national economy, which is being increasingly affected by the global financial crisis and the world-wide economic recession trend.

The Government leader raised the matter whilst presenting a review of his cabinet’s recent performance and its goals for next year to the National Assembly deputies in Hanoi on Nov. 13.

PM Dung said that the national economy is showing more signs of suffering from the effects of the global financial turmoil and economic slowdown than was forecasted, particularly in areas such as export, tourism, direct and indirect foreign investment and access to loans.

To improve this situation, the Government will continue to implement its tightened but flexible monetary policy in the near future, PM Dung stated.

“Loan interest rates will continue to be slashed and fluctuations in consumer prices and developments and trends in the global market will be closely monitored in order to curb rampant inflation rates,” he said.

In addition, the Government will complete the drawing up of management mechanisms and regulations mandating merger and acquisition activities, as well as keeping a close eye on the operations of banks, financial service providers, real estate businesses and credit organizations’ payment capacity.

Such moves aim to effectively monitor those financial institutions and ensure that individuals’ savings are safeguarded, the PM affirmed.

He said that a mechanism that will allow borrowers and lenders to agree on appropriate loan interest rates, as advocated by the National Assembly, will soon be in place and the prices of coal and electricity would be adjusted only after outlining an appropriate roadmap.

“Auditing must be compulsory for businesses and the fight against speculation, fake goods, trade fraud and cross-border smuggling activities will be intensified,” stressed the Government leader, speaking about the imminent measures to shore-up the economy.

He informed law-makers that during 2009, ineffective government-funded projects will continue to be suspended and State budget, government bonds and State businesses’ capital will be allocated mainly to power plants, vital production projects, and seaport and road infrastructure.

PM Dung assured the law-makers that the Government will inject more investment into agriculture, rural development, education and training, science and technology, and social affairs to spur development in those areas.

He stated that the Government would closely monitor investments by State-owned enterprises’ and reiterated the policy of encouraging other economic sectors to invest in the generation of power, infrastructure construction, hi-technologies, processing industries, and the development of production and business services in rural areas.

Regarding efforts to spur production and expand markets, PM Dung stressed that the Government is currently finalizing the establishment of a credit guarantee fund to aid small and medium-sized enterprises and will soon outline a number of policies supporting the growth of this sector.

He called upon those businesses to participate in these efforts and, at the same time requested them to instigate a range of energy-saving programs, use modern technology and improve management skills to reduce production costs and establish efficient distribution networks in local markets before eyeing foreign ones.

To ensure social welfare and further reduce poverty, PM Dung said the Government will set up an unemployment insurance fund, implement developmental projects to assist the poorest communes, and improve the capacity of the social policy bank to implement effective social welfare credit programs targeting students and those in poverty.

Touching upon issues relating to environmental protection and food hygiene and safety, the Government leader stressed that his cabinet is aware of the importance of environmental protection and will issue instructions to deal firmly with those found to be polluting the environment, including the suspension of licenses for projects and works that threaten to cause environmental pollution.

Vietnam News Agency