Prime Minister sets growth target of 6.5pct in 2012

Accordingly, the prime minister has recently issued an Instruction No 922/CT-TTg asking ministries, departments, localities, economic groups and state-owned enterprises (SOEs) to focus on building socio-economic development plans and state budget estimation in 2012.

In 2012, the government will continue to implement the flexibly tightening financial-monetary policies to curb inflation, stabilize the dong and increase the country’s foreign currency reserve.

Additionally, the government will also continue tight fiscal policy, strict control and transparency of state expenditures and public investment, reduce the state budget deficit and keep government debt, public debt, national foreign debt at a safe level.

Economic growth rate in 2012 is expected to reach about 6.5%. Also, the PM asked to focus on encouraging the export promotion, especially commodities with high value and reducing the exports of raw materials and processing and import restrictions on non-essential consumer goods.

In 2011, the Government has issued eight groups of solutions aiming to reach a growth rate of 6%, inflation at 15%, reduce the state budget deficit below 5%, the trade deficit not exceeding 16% of the export turnover and expenditure saving at 10%.

The domestic collection (excluding collection from crude oil and land using tax) in 2012 is expected to increase minimum average 16-18% against 2011’s. The collection from export and import activities is estimated to increase at least 7% against the actualized figure in 2011.