Directive 25/CT-TTg on price stabilization, management in the last months of 2012

DIRECTIVE

ON THE ENHANCEMENT OF PRICE STABILIZATION AND MANAGEMENT IN THE LAST MONTHS OF 2012

Right at the beginning of 2012, Ministries, sectors and localities have actively, strenuously and effectively implement the Resolutions of the Party, the National Assembly, and the Government on the implementation of the Plan for socio-economic development and State budget estimate in 2012, including the price stabilization and management which contribute in the initial change of the economy: the GDP growth of the latter quarter is higher than that of the former; the Index of Industrial Production (IIP) has positively changed; the index of dead stock is declining; the inflation is suppressed at a low rate (the consumption price index in August 2012 increases by 2.68% compared to December 2011).

However, the CPI in September have shot up by 2.2%. The increase of CPO in September is on account of the implementation of the Government’s Resolution on increasing medical examination and treatment service prices, tuition, and managing fuel prices through the market mechanism. Some localities have adjusted the prices of clean water, public buses which are subsidized by the State. Moreover, the epidemics, natural disasters, as well as the exploitation of the price adjustment policy of the State to increase goods and service prices all so affect the market price in September. Such situation signifies a complicated fluctuation of CPI in the last months, and the accomplishment of the objective for inflation control in 2012 would be difficult.

For the purposes of controlling inflation and stabilizing the macro-economy set by the National Assembly, the Prime Minister requests the Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of People’s Committees of central-affiliated cities and provinces, depending on the delegated authority and duties, continue to comprehensively and efficiently implement the carry out the duties and implement the solutions stated in the Government’s Resolution No. 01/NQ-CP dated January 03, 2012 on the primary solutions for directing the implementation of the Plan for socio-economic development and the State budget estimate in 2012; No. 13/NQ-CP dated May 10, 2012 on some solutions for resolving the difficulties for the production, business and supporting the market; the Resolutions in regular meetings of the Government, and the guiding documents of the Prime Minister. Some objectives and solutions for managing and stabilizing prices in the last months of 2012 must be immediately carried out as follows:

1. Ministries and People’s Committees of central-affiliated cities and provinces:

a) Intensify the inspection and supervision of the adherence to the provisions on price, tax, and fee management applicable to the commodity priced by the State, the commodities for price stabilization, the essential commodities serving the production and life. The first thing to do is to tightly control the prices of essential goods and services such as: health, education, clean water, transportation, milk, medicines, veterinary medicines, pesticides, fertilizers... and feedstock. Strictly and thoroughly prevent trade frauds, price transfer, import price frauds, and smuggling, especially petrol and oil, cigarettes, and minerals.  The acts of violations must be strictly handled as prescribed by law.

b) Enhance the management of State budget expenditure, together with the State budget collection, ensuring the efficiency and frugality. Avoid extracting the budget of 2012 or increase the budget beyond the estimate, except in states of emergency that are appraised by functional agencies and approved by competent authorities.

c) Operate the finance and credit policy, manage gold prices and exchange rates…

d) Promptly settle the difficulties arising during the practice according to the assigned duties; avoid imbalance of demand and supply, and price rise that destabilize the market and prices; the cases ultra vires must be reported to competent authorities for consideration and decisions.

2. The Ministry of Health, the Ministry of Education and Training, and People’s Committees of central-affiliated cities and provinces must extend the period for adjusting prices of some commodities and services priced by the State, such as medical examination and treatment services, educational services (tuition), clean water; bus tickets subsidized by the State…, and concurrently formulate a plan to adjust prices based on the assessment of the impact of price adjustment on the production and people’s life, in order to minimize the negative impact, as well as control the inflation and stabilize the macro-economy. The adjustment of goods and services prices must be reported to competent agencies for consideration before being carried out.

3. The Ministry of Finance and the Ministry of Industry and Trade must:

a) Continue to manage the petrol and oil prices in accordance with the Government s Decree No. 84/NĐ-CP dated September 15, 2009 on petrol and oil business; harmoniously combine the interests of the State, the enterprises, and the consumers through flexible use of tax instruments; make and use the price stabilization fund; focus on the inflation control and the stability of the macro-economy; guide the petrol and oil wholesalers to organize the import and supply of petrol and oil, avoid the shortage as well as speculation that destabilize the domestic market; minimize the production and business costs to decrease the frequency and level of price rise when the world’s price goes up.

b) Formulate a plan for adjusting the electricity price through the market mechanism under the State’s management in accordance with the National Assembly’s Resolutions, Compatible with the domestic and the world’s economic development in the near future, especially the inflation control and macro-economic stability of the Government; such plan must be reported to competent authorities before carrying out.

c) Adjust prices of coal for power generation toward resolving the difficulties of the coal industry, secure the employments and life of employees.

d) Enhance the control over the factors that affect the pricing, and the pricing of essential commodities; inspect the implementation of the provisions on price registration and price posting; strictly handle the violations of pricing.

4. The Ministry of Industry and Trade shall lead and cooperate with other Ministries, agencies and People’s Committees of central-affiliated cities and provinces to direct the Program of goods reserve for market stabilization, ensure the balance of demand and supply of essential goods and services for people, especially in the coming traditional New year’s eve; facilitate the development of production and business, stimulate the consumption and clearing dead stock; develop the domestic market, propagate and popularize the movement "Vietnamese people use Vietnamese products”; continue to construct the chain of product sale, especially the supply and sale of agricultural products; boost the trade promotion and market information to sustain the growth of the export of key products; strictly control the import mechanism, especially the ones of which the import is not encouraged.

5. The Ministry of Agriculture and Rural development shall direct the implementation of the policies on supporting breeding and fishery; tightly control the use of banned substances in breeding; take measures to prevent epidemics, livestock and poultry smuggling through the border; support people in buying agricultural products as prescribed, ensure the producers’ interest; enhance the development of the rice reserve in the Mekong Delta in order to improve the export of rice and regulate the market; accelerate the progress of the construction for flood and storm prevention and control to actively deal with natural disasters.

6. The Ministry of Information and Communications must efficiently carry out the information and propagation in accordance with the policy of the State; ensure the sufficiency and transparency to gain the public consent; avoid exaggerating and providing false information about price rise that create an chain reaction and apprehension in the society. The Ministries, agencies and localities must provide information to popularize and explain the policies related to the duties delegated, especially in changes of the mechanism, policy, or adjustment of prices of goods and services priced by the State.

7. The State-owned general companies, corporations, organizations and individuals must continue to restructure the production and business towards greater efficiency; review the economic-technical norms, technological innovation, and production cost reduction or decrease prices; promote trade to expand both domestic and overseas markets, especially of key products.

8. The Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of People’s Committees of central-affiliated cities The President of the Board of Directors, General Directors, and Directors of enterprises must implement this Directive./.