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Inflation rate estimated at 22% in 2008: MPI   2008-11-24 - TBKTVN

Minister of Planning and Investment (MPI) Vo Hong Phuc believes that the inflation rate for 2008 will be some 22% only, and that economic growth goals are within reach.


Has inflation been controlled?


Minister of Planning and Investment Vo Hong Phuc

Previously, we reported to the National Assembly that the estimated inflation rate was about 25% for this year. However, we have discussed this with the General Statistics Office and we have agreed that the inflation rate will be around 22% as the consumer price index (CPI) increased by 0.18% only in September, and decreased by 0.19% in October. The CPI of October 2008 was 21.69% higher than that of December 2007, and there will be another minus figure in November. Commodity prices may increase a little in December, the month before Tet.


How about the goal of curbing inflation in 2009?


The goal for 2009 is to rein the CPI increase in at less than 15%. We have every reason to believe we will be successful in this.


The economic growth rate goal for 2009 is 6.5%. What would you say about the goal and our ability to attain it?


The economic growth rate goal for 2009 is 6.5%

We will reach the goal if we have determination. The government gave three scenarios to the National Assembly: 6.5%, 7% and 7.5%. After considering the situation and the forecast happenings in the world, we suggested the 6.5% scenario.


With the 6.5% growth rate scenario, agriculture production has to contribute 2.8% to the growth rate (it is over 3% in 2008). The added value of the industrial sector is projected to be 7.4%.


In such difficult conditions, how can we stimulate the operations of industries in order to ensure a high economic growth rate?


The solution is to aim at the construction and construction material industries. The Prime Minister has asked us to reconfigure the solutions for the last two months of 2008 and the first months of 2009 by stimulating construction. Pumping money into effective investment projects will help consume construction materials, which will help clear the big stocks of steel and cement.


What about investments?


Regarding investments, the National Assembly has ratified the budget of VND112tril. Investments in state-owned groups, including PetroVietnam, Vietnam Textile and Garment, Rubber Group and Vinacafe, will decrease, while only investments in companies that serve public interests will remain unchanged.


As for official development assistance, the government has ordered the acceleration of disbursement.


Moreover, lower bank interest rates will create favourable conditions for enterprises to implement their projects.

We also have over $100bil worth of committed foreign direct investment capital, and what we have to do is to have the disbursement of over $11bil as forecast. The government will create the most favourable conditions for investors to speed up disbursement.


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