The communist country

in a landmark move, parliament put the brakes on a proposed $56 billion north-south bullet train, saying it was too pricey for the country of 87 million, where the average monthly wage is about $100. National Assembly member Nguyen Minh Thuyet shocked many in another bold move last year by calling for an investigation to determine whether Cabinet members, including Prime Minister Nguyen Tan Dung, were responsible for massive losses at the state-owned shipbuilding conglomerate Vinashin. It was a scandal that left the company teetering on the edge of bankruptcy and drowning in debts equal to 4.5 percent of the country's gross domestic product. It resulted in a financial black eye when international ratings services issued credit downgrades. Although Thuyet's calls for a probe were dismissed, he said it's important for the National Assembly's "democratic trend" to continue. He said the government must find a balance in its quest for high growth rates because current policies are resulting in skyrocketing inflation, which is crippling the working poor.

In January, new leaders were selected for the all-powerful Politburo during the grand pomp-and-circumstance Party Congress held every five years. The new National Assembly is expected to convene its first meeting in July to appoint the country's new leaders. However, it is a ceremonial announcement since those positions, including the president, prime minister and parliamentary chair, were already decided behind closed doors during the secretive Party Congress.



Vietnam inflation nears 20%: official data

By Ian Timberlake, AFP 25 May 2011



Vietnamese inflation will reach almost 20 percent year-on-year in May, official estimates said Tuesday, adding to the pressure on consumers facing some of the steepest price rises in the world. The consumer price index is expected to rise 19.78 percent this month compared with May last year, the General Statistics Office said. Inflation has increased every month since August of last year, but is still below a recent peak of 28.3 percent recorded in August 2008 as well as the triple-digit figures seen in the 1980s.



The communist country has one of the top five inflation rates in the world, and poverty will increase as a result, the United Nations in Vietnam said earlier this month. Food prices are a key driver of the price increases. The government, long focused on economic growth, now says fighting inflation is its top priority. It has tightened monetary policy and set a series of targets to help stabilise an economy facing challenges including a struggling currency and a trade deficit. Among its goals, the government wants commercial banks to keep growth in credit, or loans, to below 20 percent this year. It also said public investment should
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