Cabinet discuss price control measures

Shoppers select fresh vegetables at Ha Noi's Big C Thang Long Supermarket. The Government is mapping out measures to curb price hikes during the final two months of the year. Photo Tran Viet

The Government leader asked ministries and authorities to keep a close eye on market developments to prevent the cost of production, and in turn basic necessities such as medicine and milk, from surging.

He pointed out a need to continue executing monetary policies in a flexible and cautious way, especially in handling exchange rates and supervising the gold and foreign exchange markets, to meet targets for development and inflation control.

The monthly meeting also reviewed socio-economic developments in October and the first 10 months of the year.

Dung praised ministries and industries for fulfilling most of their targets, especially in the socio-cultural field with its competitive index ranking up by 10 places.

Most noteworthy was the success of the 17th ASEAN Summit, which was highly valued by the international community while national security was safeguarded, said the Government leader.

Cabinet members agreed that the economy had continued to grow positively in the first 10 months of the year, despite the global economic crisis and severe natural disasters.

Industrial production increased in October by 13.5 per cent year on year to over VND72 trillion (roughly $3.67 billion). In total, industrial production for the first ten months of the year grew 13.7 per cent over the same period last year to over VND645 trillion.

Agricultural production remained stable while services recorded a high growth rate.

Export revenues were posted at $6.25 billion in October, bringing the total revenue in the first 10 months to $57.8 billion, representing an increase of 23.3 per cent year on year.

The consumer price index (CPI) in October climbed slightly by 1.05 per cent month on month, lower than September's 1.31 per cent, but still higher than the same period last year. The October CPI rate grew by 7.58 per cent compared to December 2009.

October witnessed destructive floods in the central region, which caused damage estimated at VND11.64 trillion.

The Government has instructed ministries and local administrations to earmark VND730 billion and supply 14,000 tonnes of rice to flooded areas.

Cabinet members admitted that there were still a lot of difficulties and challenges ahead, especially the threat of inflation, skyrocketing gold prices and volatile exchange rates.

Vinashin story

After the meeting, Minister and Chairman of the Government Office Nguyen Xuan Phuc held a press conference with the media. Apart from the main content of the Government meeting, he briefed them about the latest developments in the Vinashin case. According to Phuc, a total of eight cadres and leaders of the group have been arrested.

"The Government has developed a project to restructure Vinashin in the direction of focusing on the group's main function of shipbuilding and repairs, and training labourers for related services," said Phuc.

Under the direction of the Deputy Prime Minister Nguyen Sinh Hung, the head of the Vinashin Restructuring Steering Board, and competent authorities, Vinashin has initially reinforced the organisational apparatus to resume operations.

According to Phuc, Vinashin had recently sold ships worth more than US$150 million each and planned to continue selling its state-of-the-art vessels.

Vinashin is still able to provide stable salaries and social insurance for its labour force which is made up of thousands of highly skilled workers.

"Under the leadership of the Politburo and instructions from the Government and Steering Board, Vinashin is being restructured step by step to help the group continue its operations effectively, despite on-going difficulties," said Phuc.