Thoi Bao Kinh Te Vietnam (Vietnam Economic Times) had a talk with the minister in the following interview. Excerpts:

Can Vietnam control inflation?

Previously, in a report to National Assembly, the whole year's CPI could rise by 25%. But at this time, through exchanging with general Statistical Office, CPI in September increased by 0.18%, October down 0.19% but up 21.69% compared with the last December and the figure of November was down as well. With the predication of a surge in December CPI, the whole year's inflation would be 22%.

Which goals are to control inflation in 2009?

In 2009, Vietnam expects to control inflation growth at less than 15%. We believe that the goal can be achieved. prime minister also said that the government should aim to bring inflation to 2007 level of 12.63%.

As planned, the GDP growth for 2009 is set at 6.5%. Can this be achieved in the current difficult situation?

When discussing in the National Assembly, the government proposed three figures of 6.5%, 7% and 7.5%. After reviewing the economic situation of 2008 and forecast for 2009, we fixed the suitable rate of 6.5%.

With 2009 GDP growth of 6.5%, the agriculture sector will have to contribute 2.8% (against over 3% of 2008). Up to this time, the industrial production value has increased by 15.8-16%. The added value of industry sector has now surged to 9% only, lower than previous years due to the 2% reduction in the growth of construction sector in 2008.

From this, the prices have gradually stabilised and show a downward trend.

However, in the current situation, what will you do to promote industrial operations to help maintain the economic growth?

We will focus on construction and construction materials. Thus, the prime minister ordered the authorities to re-calculate the economic plan for the remaining two months of 2008 and first months of 2009 through increasing demand of construction and investment with an aim to help push up the sales of steel, cement, and other construction materials.

In terms of investment, NA passed the budget amount of 112 trillion dong against the initial figure of 118 trillion dong. Investment capital that will be provided to PetroVietnam, Vinatex, Vietnam Rubber Group, Vietnam Coffee Corp was cut down. So the investment demand of the state groups and corporations cannot be increased.

As for G-bonds, NA agreed to add six trillion dong to offset capital reduction for Ministry of Traffic and Transport, Ministry of Education and Training, Ministry of Agriculture and Rural Development. To push up the demand, Vietnam should enhance capital disbursement to sell off a huge volume of stockpiled materials.

Vietnam's ODA disbursement must fulfil international donors' request, which can help promote the investment demand.

Another factor to boost investment demand is investment credit of state groups and SOEs. A lower lending rate at banks will facilitate enterprises to carry out projects.

At present, we have over US$100 billion dong of committed FDI capital. The important thing is how to disburse over US$11 billion as forecasted. The government announced that it will create conditions for investors to carry out the disbursement plan well.

Thoi Bao Kinh Te Vietnam - November 26, 2008