December 3, 2010

Vietnam's leader orders price stabilisation effort during holidays

Vietnam's Prime Minister Nguyen Tan Dung has issued a directive to call for higher output and stabilised prices during the upcoming Lunar New Year Holiday.

Under Directive 2164/CT-TTg, ministries, sectors and localities must focus on removing legal barriers and create favourable conditions for businesses to expand production to ensure smooth provision of key commodities like poultry, meat, vegetables and milk.

The State Bank of Vietnam must take strong measures to stabilise the prices of gold and foreign currencies as well as interest rates. Severe punishments will be given to those who speculate or corner gold and foreign currencies on the market.

Inspections will be tightened against speculation, smuggling, and trade fraud, and criminal prosecution will be applied if necessary.

So far of this year, the government has already implemented measures to develop production, and ensure price stabilisation, and the balance of supply and demand for goods and services.

The national average consumer price index in 11 months exceeded the annual forecast with an on-year increase of 8.96%.

At the beginning of this year, the government targeted a nationwide CPI of 8%. In November alone, Vietnam's CPI rose 1.86% over the previous month. This figure increased by 11.09% over November 2009, and 9.58% over December 2009.

In the Directive, Dung said the cause of the problem was a few organisations and individuals that did not take price management seriously.