Inflation rates should be kept at 8 percent: PM Prime Minister Nguyen Tan Dung has asked ministries, agencies and localities to coordinate closely to contain the rate of inflation at no more than 8 percent. Addressing a monthly cabinet meeting in Hanoi on October 28, PM Dung urged the State Bank of Vietnam to tighten management of the gold market, continue stabilizing exchange rates, and submit a project to deal with bad debts. It is necessary to coordinate fiscal and monetary policies to ensure macroeconomic stability and control inflation, he said, emphasizing that the State budget management should be tightened to maintain a balance between collections and expenditures. The Government leader also asked ministries, agencies, and localities create the best possible conditions to encourage the development of businesses, especially in the agricultural and tourism sectors. According to PM Dung, more attention must be paid to improving social protection and welfare, helping poor households with accommodation, preventing epidemics, ensuring food hygiene and safety, and combating corruption and crime. He also asked ministries and agencies to improve the quality of communications and providing information in order to fulfill the 2012 socio-economic targets and work towards achieving sustainable development. Accoridng to reports presented at the meeting, there are positive signs for the economy  and measures to curb inflation and stabilize the macroeconomy have proved effective. The October index of industrial production (IIP) increased 5.8 percent compared to the previous month. The agro-forestry-fishery sector enjoyed stable development with the total output of aquatic products reaching 4.83 million tonnes in the past ten months, up 5.2 percent over the same period last year. The 2012 rice output is also expected to increase by 0.7 million tonnes compared to 2011. In the first ten months of this year, total retail sales of goods and services are estimated at more than VND1.91 trillion, up 17.1 percent against last year’s period while the number of foreign visitors to Vietnam increased 11.2 percent to 5.34 million. Around 57,000 businesses were established in the reviewed period, while 42,100 enterprises were dissolved or temporarily ceased operations, a 7.4 percent decrease compared to the previous corresponding period. Six thousand companies were established and a little more than 1,000 were halted in October alone. The October CPI increased by just 0.85 percent, much lower than the 2.2 percent recorded in September, up 6.02 percent against 2011 and 7 percent compared to the same period last year. Regarding the monetary and credit situations, total bank deposits were estimated to increase 14.2 percent and loan interest rates fell 5-8 percent from those in 2011. Annual interest rates remained at 11-13 percent for the agricultural and export sectors, support industries and small- and medium-sized enterprises, while they stood at 14-17 percent for other sectors. Total credit outstanding was 2.77 percent higher than 2011. Total export revenues in October are estimated to rise 4.4 percent over September to reach US$9.9 billion, while imports hit US$10.4 billion, up 11.7 percent. In the first ten months of this year, Vietnam’s exports earned more than US$93.8 billion and the country suffered a trade deficit of about US$357 million. State budget income and spending were managed well. Total budget revenues are estimated at VND523.4 trillion while budget spending reached VND178.6 trillion (or 75.1 percent of the estimation). As much as VND134.39 trillion in investment funds were disbursed between January and October, accounting for 74.7 percent of the estimated figure, and US$9 billion in foreign direct investment was disbursed, equivalent to 98.9 percent of the amount recorded during the same period last year. Source: VOV