Government determined to attack inflation

July 25, 2011 | 10:00

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The government has reaffirmed its determination to screw down inflation and maintain its monetary tightening policies at the government cabinet meeting on July 24.

“Implementation of Resolution 11 continues a key policy in the next months,” said Nguyen Xuan Phuc, Government Office chairman.

It follows the consumer price index jumping 1.17 per cent in July against June or 14.61 against December, 2010. In comparison with the same period last year, it rose 22.16 per cent.

The government’s announcement means that enterprises still have to cope with high lending interest rates for commercial bank loans.

A survey by Vietnam WVB Financial Intelligence Services and PetroVietnam Finance Investment and Consultancy Company showed that business confidence among firms in Vietnam slid 21 points in the second quarter, from 109 to 88 points. It is the strongest drop since late 2008.

High inflation and difficulties in accessing loans due to high lending interest rates are blamed for the slide of business confidence.

Nguyen Dong Tien, deputy governor of State Bank, said holding inflation below 17 per cent was a big challenge for the government.

By Nhu Ngoc

vir.com.vn

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