This information was released at a Government press briefing on March 27 to announce the results of the Government’s regular monthly meeting, with Deputy Prime Minister Nguyen Sinh Hung in the chair.

Deputy Minister of Planning and Investment Cao Viet Sinh said that CPI in March increased by 9.19 percent compared to last December’s level in which, restaurant services saw a highest increase of 14.45 percent, housing and building material  (up 8.01 percent), transport costs and post charges (up 7.32 percent) and other services (up 0.6-4.38 percent).

In the first quarter, GDP growth is estimated to reach 7.4 percent, lower than last year’s figure but higher than the levels of the same period of the previous years. The country continued to experience a trade deficit with import turnover registering a 2.7 fold increase over export turnover. Statistics showed that export turnover hit US$13 billion, up 22.7 percent while import turnover rocketed to US$20.39 billion, up 62.5 percent from a year earlier. As a result, the US$ 7.36 billion trade deficit trebled the level of the same period last year.

Mr Sinh said that in the near future, the Government will continue to tighten the monetary system, control inflation, stabilise the macro economy and mobilise capital sources for economic development.

In addition, the focus will be on ensuring the stability of interest rates, controlling the exchange rate between Vietnamese dong and US dollar by expanding the band of interest rates, buying foreign currencies for exporters and supplementing foreign currency reserves through the issuance of the

State Bank of Vietnam (SBV)’s bills and Government bonds.

It is imperative to increase the effective use of State budget by scrutinising the implementation of projects, devise measures to control market prices, distribution and consumption networks, and assist the victims of natural disasters.

In order to overcome difficulties, Mr Hung underscored the need to work out three solutions for medium and long-term development with a focus on controlling inflation, ensuring social welfare and reducing spending. According to him, the Government is considering adjusting the economic growth from 8.85 percent this year to 7.5 percent and it will report this to the National Assembly at its coming session, scheduled for May.

In the near future, the Government plans to work with a number of corporations, provincial and municipal leaders to reach a consensus on management measures, Mr Hung said.