Vietnam prepares for challenges posed by dropping world oil prices
Play
Vietnam government yesterday admitted that the country's economy would face new challenges from the ongoing drop in world crude oil prices.
At a monthly Cabinet meeting held yesterday in Hanoi, Prime Minister Nguyen Tan Dung urged the Finance Ministry to calculate state budget income in order to avoid a deficit.
Oil prices fell from US$105 per barrel at the end of July to $68.53 at the end of November. This is the lowest in about four years.
Vietnam exports crude oil, but it has to import finished petroleum products.
The premier also called for a tighter control of prices and markets as well as combating contraband and low-quality goods as the New Year is approaching.
During January-November, the macro economy continues to stabilise, while growth recovery was reported in all fields. GDP growth was higher than in the two previous years and is expected to exceed the set target of 5.8 per cent.
In the period, inflation was kept under control, the consumer price index (CPI) rose by 4.3 per cent, while the index of industrial production rose by 7.5 per cent – and FDI disbursement increased by 6.2 per cent.
Dung also called on ministries, sectors and localities to speed up economic restructuring in line with the changing growth model, while boosting the restructuring and equitisation of state-owned enterprises as planned.
He asked for more efforts to stabilise the macro economy, remove business obstacles, and hasten processing and disbursement of projects, especially those involving infrastructure.
Meanwhile, the State Bank of Vietnam was requested to implement measures to deal with bad debts, and reorganise credit institutions, making it easier for businesses to access loans.
The prime minister also asked ministries, sectors and localities to continue implementing administrative reform and improving the business climate.
They were also urged to strengthen inspections over law enforcement and corruption and prevent wastefulness.
The government leader stressed the need to focus on sustainable poverty reduction, new-style rural areas and job generation.
He also asked for concerted measures to combat social crimes, and ensure social order and traffic safety.
Dung also agreed with a proposal from the Labour Ministry that state cadres and public officers have four days off from January 1 to 4 for New Year; nine days off from February 15-23 for the Lunar New Year; and six days off from April 28-May 3 for Hung King Festival, Reunification Day and Labour Day.
At a following press conference, head of the Government Office, Nguyen Van Nen, praised the decision for Thua Thien-Hue to end a controversial resort project at Hai Van Pass. The provincial government said the decision was made following public outcry over the project's planned location.
At the press conference, Nen also reaffirmed that the economy did not show signs of deflation.
