The Vietnamese government on Tuesday ordered the central bank to pursue a flexible monetary policy and ensure annual credit expansion of 25 percent as part of several measures to fuel economic growth this year.
The State Bank of Vietnam needs to bring market interest rates down and keep money supply growth at around 20 percent, the government said in a resolution aiming to help the country achieve its economic growth of 6.5 percent for this year.
Among measures to control inflation, authorities and companies have been ordered to keep fuel, power and coal prices stable. The Ministry of Industry and Trade has to ensure a sufficient supply of consumer goods to prevent price hikes, the government said, noting that speculation and trade frauds would be punished.
Consumer prices rose 9.46 percent in a year to March, the highest inflation rate in a year.
The resolution stated that the import of unnecessary products must be restricted and exports should grow by more than 6 percent in 2010. The Ministry of Industry and Trade were ordered to design measures to boost exports and submit their plan to Prime Minister Nguyen Tan Dung this month.
The government has also ordered ministries and local administrations to tighten control over state-funded projects and focus capital resources in important projects that need to be completed this year.