PM asks central bank to boost credit growth

Saturday, Mar 01, 2014 11:27

PM urges the State Bank of Viet Nam to boost credit growth to inject capital into the economy. — Photo

HANOI (Biz Hub)— Prime Minister Nguyen Tan Dung has directed the State Bank of Viet Nam (SBV) to facilitate credit growth, quickly inject capital into the economy and improve enterprises' access to capital.

The PM was speaking at the monthly meeting of cabinet, which he chaired yesterday.

At the meeting, SBV Governor Nguyen Van Binh revealed that a total of US$4 billion had been added to Viet Nam's foreign exchange reserve.

According to Binh, this was due to a stable foreign exchange rate and the fact that the state bank released VND150 trillion ($7.1 billion) in January to ensure liquidity.

He added that Viet Nam would closely co-ordinate fiscal and monetary policies to keep foreign exchange rates stable and interest rates for loans at reasonable level.

Also, at the meeting, PM Dung urged all ministries, sectors and localities to speed up the restructuring of State-owned enterprises.

He said it was crucial to focus on stepping up business privatisation, while strengthening management and supervision over the State-owned sector.

He also asked for quicker disbursement in capital for construction sourced by bonds, the budget and official development assistance (ODA) while ensuring construction quality.

According to a report by the Ministry of Planning and Investment, in the first two months of 2014, the country recorded a trade surplus with surges in exports as well as industrial and agricultural production values.

The disbursement of ODA and FDI capital continues to rise compared to the same period last year, while the service sector also reports good results. The report added that the number of foreign tourists in Viet Nam also increased sharply.

Regarding specific measures to solve difficulties in business and production, many cabinet members proposed that the Government prioritise credit for the agricultural sector and rural areas, while intensifying investment promotion and expanding the export market, especially for key agricultural products.

According to Minister of Agriculture and Rural Development, Cao Duc Phat, ministries and authorised agencies should work more closely with the ministry to seek and broaden export markets for major agricultural products, especially rice.

He also called for ministries, sectors and localities to strengthen co-ordination in the inspection and quarantine of poultry, strictly supervising the cross-border trade of livestock and fowls, and minimising the spread of epidemics across borders, especially in the north.

Meanwhile, Deputy Prime Ministers Nguyen Xuan Phuc and Hoang Trung Hai underscored the necessary improvement of the domestic business environment and the effective implementation of policies to attract foreign investment.

They asked the Ministry of Planning and Investment to coordinate with other ministries to find measures to assist new enterprises, while eradicating obstacles for BOT (build-operate-transfer) projects.

Mentioning ways to pick up business, Deputy Prime Minister Vu Van Ninh said the promotion of production should be closely attached with the search for and forecast of markets. — VNS

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