Vietnamese economic planning agency proposes measures to boost exports
 updatetime:2010-04-01 13:47:48   View:0 Source:http://www.caexpo.org
    HANOI, March 25 (PNA/Xinhua) -- Vietnam's Ministry of Planning and Investment (MPI) proposed a package of measures to boost export and narrow the country's trade deficit in the following months this y


HANOI, March 25 (PNA/Xinhua) -- Vietnam's Ministry of Planning and Investment (MPI) proposed a package of measures to boost export and narrow the country's trade deficit in the following months this year, said a report on the ministry's website on Thursday.

Latest figures showed that Vietnam is expected to see trade deficit in the first three months of this year stand 3.6 billion U. S. dollars, making up 25.6 percent of the country's total export turnover, said the ministry.

The ministry said that the State Bank of Vietnam should consider more flexible monetary policies to ease credit access to local companies and to ease foreign currency supply to local exporters.

Currently, high lending interest rate of around 15 to 18 percent a year is hindering Vietnamese producers' ability to mobilize capital for production. The high interest lending rate followed the central bank's decision in early February this year to give local commercial banks more flexibility to decide lending interest rates.

In addition, the recent devaluation of Vietnamese dong against the U.S. dollar makes it harder for local exporters in ensuring foreign currency supply for their export activities.

Therefore, the ministry suggested that local companies and exporters to consider other flexible ways to mobilize capital to serve production and export activities. The possible ways include borrowing from foreign agencies and issuing sector bonds.

The ministry also said the government should consider continuing its subsidy lending interest rate of 4 percent to local companies and speeding up infrastructure projects to facilitate flow of goods.

 

According to Vietnam's Ministry of Industry and Trade, Vietnam' s export value this year is expected to reach 60 billion U.S. dollars, up 6 percent year-on-year. The country targets to control trade deficit at no more than 20 percent of export value.