Posted on 15 Nov 2007
Tran Du Lich, Head of the HCM City Economics Institute, said that the 9-10% GDP growth rate and 5% inflation rate would be the ideal scenario for the national economy. However, he said that it is unfeasible to target such ideal figures.
The government is going to set up a supervision committee in charge of controlling banking, insurance, securities and investment funds’ operations. How do you think the committee will affect the CPI in 2008?
We have not initiated a comprehensive measure to supervise the three markets, monetary, securities and insurance, and we still do not have effective tools to settle the ‘ragings’ of the two markets, finance and real estate. It is because of the lack of the harmonisation of policies on the finance market regulation. That explains why the government plans to set up a committee which will supervise all three markets.
If the GDP growth rate is 9-10%, it would be ideal if the CPI increase is below 5%. However, it seems to be unfeasible to target that scenario as there are latent unstable factors in the national economy.
How would the CPI perform if the state removed the subsidisation scheme?
The global economy would suffer, not
Do you think it is necessary to reserve oil and petrol as other countries do?
In fact, it is really very complicated work with our current financial conditions. Moreover, you need to ask the questions of where and how to store oil and petrol.
Some experts say that the government has abused administrative orders in regulating the domestic market. What is your comment about that?
Using administrative orders is always the worse-case solution. A market economy should be regulated by macro-economic solutions. However, as you may know, administrative orders have helped ease the fever quickly. If you have a temperature, you have to take an aspirin to lower the temperature first and then seek further treatment.
