Prime Minister Nguyen Tan Dung has emphasised the need for the country to curb inflation and stabilise the macro-economy.

PM Dung stated this during an online conference in Hanoi toimplement the Government’s major solutions to curb inflation, stabilisethe macro economy and ensure social security on February 24.

This requires all departments at all levels and sectors to introduceadequate solutions with a strong political determination, said the PM .

Priority must be given to strictly and cautiouslyputting into action the monetary policy, controlling the growth ofcredit under 20 percent while granting preferential credit toagricultural production, supporting industries and investment inessential areas with transparent management, he noted.

He also asked the State Bank of Vietnam to mobilise and utilise allthe sources it could to control the exchange rate and prevent theexchange rate from fluctuating.

After the conference,state-owned groups and corporations must sell all their foreigncurrencies to the banks to sell to businesses at the regulated pricewhen they are in need, said the PM.

Regarding theimplementation of the fiscal policy, PM Dung demanded an increase of 7-8percent in income , savings in expenditures by 10 percent and a cut inover-expenditure to below 5 percent.

To promoteproduction, encourage exports and control inflation, the PM said it is aconvenient time to promote the development of agricultural productionas the prices of agricultural products are increasing.

He also demanded a drop in imports of goods that can be producedlocally and to reduce the trade deficit to ease the exchange rate.

The government leader confirmed that it is essential to increaseelectricity and petroleum prices and proposed that the ministries andlocal authorities assist poor families with their electricity bills.

He also asked the media to promote information on the advantages anddifficulties to help the people understand the situation and create aconsensus to successfully implement the tasks.

Earlier, Permanent Deputy PM Nguyen Sinh Hung had introduced thegovernment’s Resolution on major solutions to rein in inflation,stabilise the macro-economy and ensure social security.

These solutions focus on implementing the strict and cautious monetarypolicy; executing the tightened fiscal policy, cutting publicinvestment and reducing State overspending; stepping up production andbusiness, encouraging exports, restraining trade deficit and effectivelyusing energy; adjusting electricity and petroleum prices combined withsubsidies for poor households; and ensuring social security.

Hung stressed that curbing inflation is the government’s number one,consistent priority, adding that if successful, the move would helpimprove people’s lives and ensure macro-economic stability andsustainable development.

The implementation of thetightened fiscal policy and the reduction of both public investment andState over-expenditure will not target salaries, social policybeneficiaries or loans for students, but aim to stop the purchases ofnew equipment; cut spending on electricity, water and petroleum, haltthe allocation of funding for unnecessary projects; and reduce expensesfor conferences and seminars, he noted.

At theconference, leaders of ministries, concerned agencies and localities allaffirmed a strong resolve to perform the coordination mechanism,increase the dissemination of information and adopt specific actionplans to effectively implement the resolution and achieve thegovernment’s targets./.