VietNamNet Bridge – A large part of the battle against inflation is conquering negative public expectations, National Assembly Economic Committee member Nguyen Ngoc Hoa told Thoi bao Kinh te Viet Nam (Vietnam Economic Times).

Some are saying that strong Government measures to rein in inflation are hurting business. Do you share this opinion?

The measures to rein in inflation that the Government has put forward are correct and essential. The Government has also asked enterprises, banks and the public to share the burdens of implementing these measures. They will cause some difficulties for enterprises as a matter of course. But we have no other choice in the present circumstances. I have faith in the creativity, vitality and ability to overcome difficulties of enterprises which will help them get through this difficult period.

However, the Government should play its role as a ‘midwife' to enterprises in an attempt to stabilise the economy at least through the end of this year and even throughout the next year. By so doing, enterprises will have enough time to adapt to the situation.

I think enterprises and the public support the Government in taking drastic anti-inflation measures. But they also expect the Government to help them gain trust that these measures in a way will help rein in psychological factors or inflationary expectations, which are a decisive factor in determining if we succeed in curbing inflation.

You have just mentioned that measures need to continue into next year. Why is that?

High on the list of anti-inflationary measures is to restrict the trade in gold and dollars. These measures need to be carried out not only this year but throughout next year, since restricting the trade in gold and dollars will require a roadmap. If we want to fight dollarisation, we must formulate policies which clear the way for the provision of dollars to import essential goods and meet people's legitimate demands. Only by so doing will enterprises and people voluntarily sell dollars to banks.

What inflation rate this year would be a success?

The Government is determined to hold inflation this year to the lowest possible rate. In my opinion, we will have been successful if we can hold it to a single-digit rate. This year's anti-inflationary measures are co-ordinated, strong and drastic. But I hope that the Government will implement them with long-term stability in mind, creating public trust. It is essential to create positive expectations among enterprises and the public to keep them from holding money in banks or buying gold. If that continues, then the fight against inflation will not be successful.

VietNamNet/Viet Nam News