return icon

African swine fever holds back foodstuff segment and CPI

The African swine fever was named as one of the factors behind the slow rise of the CPI so far in 2019, despite the government’s flexible monetary policy and an increase in gas and electricity costs.



Despite the swine fever, an increase in gas and electricity costs have pushed the CPI up



The General Statistics Office (GSO) reported that the average consumer price index (CPI ) in the first four months of this year increased 2.71 per cent on-year. This is the lowest average four-month CPI ascension as compared to the same period last year (2.8 per cent), and in 2017 (4.8 per cent).

“The increase in the prices of petrol and electricity was the key driver in the climb of the CPI in the first four months of 2019,” said GSO’s head Nguyen Bich Lam.

Specifically, in April the retail price of bio-fuel E5 RON 92 jumped VND1,115 to VND19,703 ($0.85) per litre, and that of RON95 increased to VND21,235 ($0.923), up VND1,484.

The prices of diesel and kerosene went up by VND297 and VND291 to VND17,384 (0.755) and VND16,262 ($0.7) per litre, respectively. Meanwhile, the price of mazut was capped at VND15,617 ($0.68) per kilogramme, up VND1,127.

In April alone, petrol retail prices rose by VND3,000 ($0.13) per litre after two continuous hikes.

Lam said that in March the average price of electricity went up 8.36 per cent under the Ministry of Industry and Trade’s Decision No.648/QD-BCT, leading to an on-month 1.85 per cent hike in household-oriented electricity, a 1.42 per cent increase in the petrol price, and a 0.98 per cent rise in the materials for repairing houses.

However according to the GSO, the four-month CPI has been prevented from a bigger rise due to the appearance of African swine fever since March, affecting the consumption of pork, which occupies about 60 per cent of Vietnamese households’ foodstuff consumption.

“In April, the price of pork dropped 3.07 per cent on-month due to consumer worries regarding African swine fever, and shifting to using other types of foodstuffs,” Lam said.

Just like all other companies operating in the pork value chain in Vietnam, the US-backed Cargill Vietnam is now dealing with the fever, which is said will last long and has had a negative impact on all players’ performance not only in Vietnam, but also in other nations hit by the disease.

Production and sales volume of feed and pork companies in Vietnam have decreased since March because the swine population in impacted areas is shrinking while farmers are reluctant or even not allowed to repopulate their farms amidst the disease, according to a Cargill Vietnam source.

The success of the four-month CPI was cited by the GSO to also derive from the State Bank of Vietnam’s (SBV) flexible monetary policy, which since the start of the year has helped stabilise the value of the dong and the VND/USD exchange rate.

Deputy Prime Minister Vuong Dinh Hue has ordered the SBV to continue the policy in close combination with the fiscal policy in order to keep an inflation rate of between 3.3 and 3.9 per cent this year. The SBV has also been asked to control all monetary supplies and credit both in structure and quality, and to take all necessary solutions to continue stabilising the VND/USD exchange rate and lending rates at banks.

After recently working with the Vietnamese government, Alex Mourmouras, division chief in the International Monetary Fund’s Asia and Pacific Department, said, “Vietnam’s plans to modernise the monetary policy framework, including greater exchange rate flexibility to make the currency a better absorber of external shocks, are welcome. Gradual reserve accumulation should continue. To safeguard monetary and financial stability, the system of macroprudential regulations should be strengthened.” VIR


Sea tourism and expectations for a 'made in Vietnam' fleet

The number of cruise tourists accounts for only 2-3% of the total number of international visitors to Vietnam.

Hanoi’s tourism sector rakes in over VND1 trillion during Tet holiday

The capital expects to welcome roughly 332,000 visitors, including 32,000 international guests, during the Lunar New Year holiday from January 21 to January 26, with total revenue anticipated to reach more than VND1 trillion.

Stone lion statues - Symbol of stone sculpture art of Ly Dynasty

According to Buddhism, lion is the embodiment of intellectual power, but with stars on the body, the stone lions of the Ba Tam pagoda-temple also have the meaning of carrying the moving sky.

Vietnam's retail market predicted to bustle in 2023

Although 2023 is forecast to see many difficulties, experts expect this is a recovery year of the retail sector after COVID-19 pandemic as there are many signs showing the return of investors and higher demands.

Vietnam's leather and footwear industry targets US$27 billion in 2023 exports

The leather and footwear industry is striving to reach US$27 billion in export turnover in 2023, an increase of about 10% compared to one year earlier amid shrinking major markets and falling demand.

Discovering artisans' skills in Thanh Ha ancient pottery village

If pottery villages now mainly use molds, artisans in the Thanh Ha ancient pottery village in Hoi An city, Quang Nam, have kept their traditional method of making pottery - hand made and wheel thrown.

Destinations across Vietnam report surges in holiday-maker numbers during Tet

Tourist attractions across Vietnam have lured large numbers of holiday-markers during the week-long Lunar New Year (Tet) festival from January 20-26.

EVFTA presents tremendous trade, investment advantages

Commitments outlined in the EVFTA on both trade and investment are expected to contribute to attracting European businesses and investors to expand their activities in Vietnam, further promoting trade and investment cooperation.

10 houses with special architecture in Vietnam

With bold ideas, architects can create houses that are both aesthetic and functional. Here are 10 interesting houses in Vietnam.

89 people killed in traffic accidents during seven-day Tet holiday

A total of 152 traffic accidents occurred nationwide, killing 89 people and injuring 111 others during the 2023 Tet Lunar New Year holiday from January 20-26, reported the Traffic Police Department.

End of Tet holiday marked by high traffic congestion around major cities

In a bid to avoid the congestion, many people opted to return on Wednesday afternoon or Thursday morning.

Water resources planning scheme for 2021-2030 announced

The Ministry of Natural Resources and Environment (MONRE) has announced a water resources planning scheme for the 2021-2030 period with a vision to 2050, which was approved by the Prime Minister in December 2022.

Vietnamese businesses could join global supply chains with sound strategies: experts

A survey conducted by the association showed 63% of Japanese enterprises said they would continue investing in operation expansion in the next 1-2 years, reflecting that investors have great expectations for Vietnam's economic growth.

Ba Ria-Vung Tau welcomes nearly 2,400 international cruise tourists

International cruise ship Mein Schiff 5 with 2,370 tourists docked at SP-PSA port on January 26.


Da Lat faces traffic congestion due to tourist surge