Directive No. 2164/CT-TTg 2010 on supply-demand balance, stabilizing prices and market on the occasion of Tan Mao Lunar New Year festival

DIRECTIVE

ON FURTHER STEPPING UP PRODUCTION, ENSURING GOODS AND SERVICE SUPPLY-DEMAND BALANCE, STABILIZING PRICES AND MARKET ON THE OCCASION OF TAN MAO LUNAR NEW YEAR FESTIVAL AND IN THE FIRST QUARTER OF 2011

THE PRIME MINISTER

Since the beginning of 2010, the Government has directed and applied various measures to develop production, ensure goods and service supply-demand balance and to valorize the market prices, thus obtaining fairly comprehensive results. Over the past II months, the essential goods and services have basically met the demands; however, the consumer price index in this period already reached 9.58%. adversely affecting production and people s life. Such situation is attributed to the fact that a number of ministries, sectors and provincial-level People s Committees, failed to fully study the situation and not yet resolutely applied measures to curb inflation, control prices and stabilize the market as already directed. A number of organizations and individuals have not yet seriously implemented the management of prices and abided by the regulations on price control. Goods hoarding and speculation or even the spreading of rumors about the financial and monetary situation as well as prices, goods scarcity have not been controlled and checked in time, thus adversely affecting the Government s direction of inflation control and social welfare assurance.

In order to redress in time these above-mentioned weaknesses and to attain the target of inflation control, ensuring goods and service supply and stabilizing prices and the market during the Tan Mao Lunar New Year Festival (the Year of the Cat), and at the same time to lay foundation for the achievement of the 2011 socio­economic development objectives, the Prime Minister requests ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People s Committees, based on their respective functions and assigned tasks, to resolutely apply synchronous measures set forth in the Government s Resolution No. 18/NQ-CP of April 6, 2010, and the Prime Minister s Directive No. 1875/CT-TTg of October 11, 2010, on intensified application of measures for market and price stabilization in the last month of 2010, focusing on the following major tasks:

1. Ministries and sectors shall coordinate with provincial-level People s Committees in removing difficulties related to mechanisms, policies, business environment, administrative procedures, capital, business networks for enterprises to actively develop production and business, ensuring adequate supply and valorizing the prices of such essential goods as rice, cattle and poultry meat, vegetables, fruits, cement, steel, building materials, curative and preventive medicines, travel service, not letting supply-demand imbalance between regions, zones, localities throughout the country occurs before, during and after the Tan Mao Lunar New Year Festival.

2. The Ministry of Finance shall:

a/ Assume the prime responsibility for, and coordinate with other ministries and provincial-level People s Committees in, strictly and effectively managing state budget revenue and expenditure activities; scrutinize and stop unurgent expenditures for impractical purposes (year-end review patties, conferences, inbound and outbound delegations, procurement of assets) with a view to reducing the state budget deficit; review and eliminate unreasonable or irregular charges and fees, helping reduce business expenditures of enterprises;

b/ Coordinate with the Ministry of Agriculture and Rural Development in guiding the provision of funding supports to boost the production of vegetables, fruits in storm- or flood-stricken areas; guide the use of local budgets for application of market and price stabilization measures;

c/ Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade. other ministries, sectors, provincial-level People s Committees and production and business enterprises in. stabilizing the prices of electricity and coal sold to households producing electricity, cement, fertilizers or paper; apply financial, monetary and tax measures to stabilize petrol and oil prices; reschedule the adjustment of the state-set prices of goods and services; control pricing elements, resolutely stopping the registration for raising prices of goods and services liable to price registration with unreasonable price levels.

3. The State Bank shall;

a/ Continue to actively and flexibly administer the monetary policies; well manage the volume of money in circulation, aiming to meet requirements of the macro-stability and production as well as business development, at the same time ensure the liquidity capability of the banking system and the economy, in couple with the control of growth rate of total payment instruments and outstanding loans

b/ Promptly apply strong and effective measures to control and stabilize the exchange rates, gold prices and interest rates; coordinate with provincial-level People s Committees in inspecting and handling cases of gold and foreign currency speculation, hoarding and illegal trading, rigging the market.

4. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with other ministries, sectors, provincial-level People s Committees and production and business enterprises in, scrutinizing the supply-demand balance for each kind of commodity and service, which are essential and liable to price valorization; promptly apply immediate measures to balance and regulate supply and demand; direct and create conditions for production and business enterprises to participate in price valorization, expand distribution networks with more sale locations, actively transporting goods to rural areas, deep- lying and remote regions; organize sale promotion and discount, programs.

To continue stepping up the application of measures to encourage export and control import, ensuring that the trade deficit is lower than the set target.

Provincial-level People s Committees shall scrutinize and ensure goods and service supply-demand balance in their respective localities; organize, guide and provide capital support for qualified enterprises to reserve commodities and provide services for price valorization during let (Lunar New Year) Festival.

5. Market inspection and control:

a/ The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with such sectors as Police, Customs, Tax, the Ministry of Science and Technology, etc., in, organizing market inspection and control teams and severely handle acts of smuggling, trade frauds, goods speculation and hoarding for illegal price increase, particularly goods items liable to price stabilization;

b/ Provincial-level People s Committees shall direct functional bodies in their respective localities to actively set up inspection teams to combat acts of speculating or hoarding goods, spreading false news on supply and demand, goods and sendee prices in die provinces; severely handle violations according to law, including the withdrawal of business licenses or proposal to functional bodies for penal liability examination;

c/ The Ministry of Finance and provincial-level People s Committees shall continue organizing immediately teams for inspection of the observance of state law on prices as well as regulations on price adjustment, registration, declaration, listing, freight and price subsidies, publicity of information on prices.

6. Ministries, sectors and provincial-level People s Committees shall direct and request their attached agencies, units and state enterprises to abide by the Prime Minister s directives on thrift practice and waste combat, particularly regular expenditures on petrol and oil, electricity, asset procurement; to save production, business and capital construction costs. It is forbidden to use public funds and assets for improper purposes; to pay wages and bonuses in contravention of regulations;

Closely coordinate with Party organizations and mass organizations in launching the movement for consumption-saving practice in agencies and units using the state budget and the entire society.

7. The Ministry of Information and Communications, the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Planning and Investment, the State Bank and agencies managing communications or press bodies shall, depending on their respective functions and assigned tasks, actively coordinate with one another in information and propaganda activities so that people of all strata in the society quickly and accurately access the Government s activities of administration as well as information on finance, money, markets and prices: work out plans to direct information, communications and press agencies to step up the correct information and propagation of undertakings and policies of the Party and the State and directions of the Government; report the actual situation on supply and demands, prices for enterprises and people to clearly understand, creating consensus in the society, joining efforts with the Government in performing the tasks of market and price stabilization, avoiding the insecurity psychology among population.

8. Ministers, heads of ministerial-level agencies, heads of Government-attached agencies, chairmen of provincial-level People*s Committees, heads of organizations using the state budget, chairpersons of Boards of Directors, directors general, directors of enterprises shall organize the implementation of this Directive.-