After a series of measures of inflation control, consumption price index (CPI) has decreased consecutively over the past 2 months. Ph.D Mai Huu Tin, the National Assembly deputy cum Binh Duong Young Entrepreneur’s Society chairman said that this is a positive signal from Resolution 11.
Could you explain basic impacts of measure groups of public investment, finance and currency?
The common goal of the measure groups is to curb inflation. However, measures of currency control showed drastic implementation.
Investments from the State budget in the first quarter of 2011 surged nearly 20% compared to the same period last year.
Some experts said that it is time to loosen monetary tightening to solve businesses’ difficulties whilst others disagreed with the suggestion. What do you think about this?
Many businesses have faced numerous obstacles. However, if the monetary policy is loosened right now, inflation will continue increasing and this will cause difficulties for both businesses and people.
What main difficulties are businesses facing?
I think the first and biggest difficulty lies in shortage of capital. With a current lending interest rate of over 20%, increase of input costs will lead to price hike and decrease of profit.
At a production line of Yazaki Eds Vietnam Ltd.
In reality, many enterprises are selling their goods with a low cost price. Besides, decrease of demand has triggered difficulties for business. And, pressure of wage increase for laborers is increasing.
With the present economic situation, how will economic picture in 2011 look like?
According to the National Assembly’s goals, this year’s inflation should be curbed at 7% whilst economic growth must reach 7-7.5%.
At the Government’s May meeting, common targets of 2011 include a 6% growth rate of GDP and CPI increase of 15%. The figures show that growth of 2011 will lower than expected plans.
I think a growth of 5% is a good thing. However, the most concerned thing is job of laborers. If laborers are unemployed, consequences will be very heavy.
Thanks a lot!
Reported by T.Son – Translated by A.C
