Finance Minister Vuong Dinh Hue on Nov. 24 answered National Assemblydeputies’ questions, focusing on price and public debt management andbusiness performance of State-owned enterprises.
In relation toprice management, the minister stressed that price management ofessential goods such as electricity, petrol and coal is in line withmarket mechanisms and under State control.
Market mechanisms include respecting prices set by enterprises based on input costs to ensure profits remain at suitable levels.
Interms of the power sector, if prices are not set satisfactorily, itwill be difficult to attract investment, which in turn can lead to atense situation in power supply.
The minister expected theaverage electricity price to stand at 1,242 VND per kWh in 2012, a 4.6percent rise over the current level. However, the price of electricitysold to poor and low-income households will be kept the same, he said.
Regardingoil and gas price management, he affirmed the need to manage prices inaccordance with market mechanisms and world prices as Vietnam has toimport 70 percent of the products.
While answering questions onthe country’s public debts, Minister Hue affirmed that Vietnam’s publicdebts remain at safe level as most of its debts are ODA or preferentialloans. In 2011, the government’s debts are 43.6 percent, while nationaldebts account for 41.5 percent; and public debts, 54.6 percent, headded.
According to the minister, his ministry has proposed threesolutions to the National Assembly and the Government to increase themanagement of public debts.
These solutions focus on building ascenario and a roadmap to reduce overspending; enhancing the capabilityand efficiency of public debt management and improving debt forecastingand analysing capability and negotiation skills; and tightening themanagement of risks, including risks related to interest rates andexchange rates.
Stabilising the macro-economy is also considered a good solution to manage public debts, Hue said./.
In relation toprice management, the minister stressed that price management ofessential goods such as electricity, petrol and coal is in line withmarket mechanisms and under State control.
Market mechanisms include respecting prices set by enterprises based on input costs to ensure profits remain at suitable levels.
Interms of the power sector, if prices are not set satisfactorily, itwill be difficult to attract investment, which in turn can lead to atense situation in power supply.
The minister expected theaverage electricity price to stand at 1,242 VND per kWh in 2012, a 4.6percent rise over the current level. However, the price of electricitysold to poor and low-income households will be kept the same, he said.
Regardingoil and gas price management, he affirmed the need to manage prices inaccordance with market mechanisms and world prices as Vietnam has toimport 70 percent of the products.
While answering questions onthe country’s public debts, Minister Hue affirmed that Vietnam’s publicdebts remain at safe level as most of its debts are ODA or preferentialloans. In 2011, the government’s debts are 43.6 percent, while nationaldebts account for 41.5 percent; and public debts, 54.6 percent, headded.
According to the minister, his ministry has proposed threesolutions to the National Assembly and the Government to increase themanagement of public debts.
These solutions focus on building ascenario and a roadmap to reduce overspending; enhancing the capabilityand efficiency of public debt management and improving debt forecastingand analysing capability and negotiation skills; and tightening themanagement of risks, including risks related to interest rates andexchange rates.
Stabilising the macro-economy is also considered a good solution to manage public debts, Hue said./.
