Socialist Republic of Vietnam

Ha Noi, Apr. 5 (VNA) - The Government has worked out five major measures to stabilise prices in the market for the remaining months of this year, striving to obtain a consumption price index (CPI) of 5 percent in 2004.

In its March session last week, the Government required the Ministry of Agriculture and Rural Development (MARD) to keep monitoring food output by the people nationwide to effectively manage export activities and ensure food security. It also asked the ministry to enhance its inspection and prevention of evasion of taxes for rice export and the increase of food prices in the country.

The MARD should effectively carry out policies to restore poultry stock, especially by providing safe poultry breeds, animal feeds and help farmers promptly resume their poultry production, the Government said.

It urged the Trade Ministry to manage rice exports in the first six months of the year at necessary levels. National reserves of rice should be increased to stabilise the food market and insurance funds for food are needed to be set up.

Meanwhile, the steel industry was requested to adjust its agent system, overcome the halt of producing steel in some plants, and revise mechanisms of importing wasted materials to boost production of steel ingots in the country. The industry has cut import taxes of steel and reduced the imbalance of steel prices among regions.

The petroleum sector will reduce import taxes and slightly increase selling prices. It will also enhance its inspection work to ensure petrol supply for the economy and stabilise petroleum prices.

A scheme to develop the country's pharmaceutical industry should be carried out soon whilst the circulation and prices of medicine on the market will be supervised. Strict measures must be taken to deal with those who raise medicine prices by taking advantage in the monopoly of imports and distribution.

Second, capital will be further mobilised for economic growth while flexibly utilising tools of regranting capital, deduction and interest rates as well as the open market tool to regulate money circulation. Exchange rates should be stabilised to provide foreign currencies for imports of important materials, particularly petroluem, steel and chemicals.

Third, all ministries, agencies and localities should assess the rising construction expenditures of capital projects so far this year as well as estimates for the second quarter and the whole year, making proposal to the government for timely solutions with the aim of ensuring construction pace and contractors' interests.

Fourth, legal regulations on market price management should be finalised for implementing the Price Ordinance.

Fifth, the dissemination of information on the price policy will be promoted to correct false information, especially the assessment of price fluctuation in order to prevent hiking up prices.

The General Statistics Office said that March consumption price index rose by 4.9 percent over December, 2003. Prices of food went up by 8.5 percent, accommodation and construction materials, by 4.4 percent and pharmaceutical products, 4.3 percent.

Rising prices of many goods have led to this year's first three months' highest rise in consumption price index over the past five years. Unfavourable weather and large bird flu outbreak have helped boost prices.

In addition, the exchange rate of USD/VND rising from 15,600 in December 2003 to 15,800 in March and that of USD/EUR falling from 1.10 to 1.25 have helped raise not only the prices of imported petroleum, steel, fertiliser and chemicals but also that of domestic goods.-