return icon

Comprehensive solutions needed to keep inflation in Vietnam below 4%: experts

The prices of multiple products and services are forecast to rise this year, putting pressure on inflation.



Shoppers inspect pork products at a local supermarket. Comprehensive solutions are needed to keep inflation below 4% this year - PHOTO: VNA


Therefore, experts told a seminar on January 3 that it is necessary to work out comprehensive solutions to curb inflation at below 4% this year.

At the seminar on the domestic market and prices in 2019 and forecasts for 2020, held in Hanoi by the Institute of Economics and Finance’s Academy of Finance and the Ministry of Finance's Department of Price Management, experts questioned the likelihood of achieving the target.

Nguyen Duc Do, deputy director of the Institute of Economics and Finance, was cited by Vietnamplus news site as saying that the country’s inflation target would be hard to achieve as pork prices have surged since the last quarter of last year.

In the worst-case scenario, if African swine fever is not curtailed by the first half of this year and inflation starts to decline by mid-year, it will be difficult to keep inflation below 4%.

In addition, Vietnam has set an ambitious gross domestic product growth target in 2020, at 6.8%, while its growth model still depends on input factors, such as capital, which puts pressure on inflation.

However, if the exchange rate is kept stable using the high foreign currency reserves and the State Bank of Vietnam still pursues a cautious policy approach, the country’s consumer price index (CPI) may rise by 3.5% this year.

A representative of the Department of Price Management, under the Ministry of Finance, said that pork prices are forecast to continue rising in the first months of this year. The prices of healthcare and education services as well as land may also increase.

Therefore, the prices of goods should be managed in a cautious and flexible manner to help obtain the inflation target.

The Ministry of Finance suggested not adjusting public services fees in the first quarter of the year and tightening control over the prices of goods before, during and after the Tet holiday, especially for pork and entertainment and catering services.

Ministries, agencies and localities must keep a close watch on the market to work out solutions to stabilize the prices of essential products and ensure an adequate supply of goods to prevent potential price hikes.

Le Quoc Phuong, former deputy director of the Industry and Trade Information Center of the Ministry of Industry and Trade, also proposed the Government continue adopting policies to control inflation and ensure the adequate supply of goods.

In the long term, solutions are needed to curtail gossip that raises consumer concern and encourages market volatility. Economic growth based on input factors, such as capital, manpower and natural resources, must move to a growth model based on innovation and advanced technology.

According to a report by the Institute of Economics and Finance delivered at the seminar, Vietnam's CPI last year picked up by 2.79% over 2018, well below the ceiling approved by the National Assembly. The rate was the lowest in three years.

Nguyen Ba Minh, director of the Institute of Economics and Finance, attributed the CPI rise to the electricity price hike in March last year and the higher hospital services prices, sending the CPI up by 0.18%.

In addition, the prices of food posted an increase of 5.08%; beverages and tobacco, 1.79%; and public transport services, 3.02%.

Phuong from the Industry and Trade Information Center said the targeted inflation of below 4% was a result of the Government’s efforts to stabilize the economy, ensure an adequate goods supply, adopt effective control over credit and hold higher foreign currency reserves.

However, the December 2019 CPI rose 5.23% against the same month in 2018, the highest since 2014. SGT

VN central bank aims to keep inflation below 4% again

VN central bank aims to keep inflation below 4% again

The State Bank of Vietnam aims to again curb the inflation below 4 percent and sustain the monetary market this year, SBV Governor Le Minh Hung told a teleconference of the banking sector in Hanoi on January 2.

Inflation to remain below 4 percent in 2020: officials

Inflation to remain below 4 percent in 2020: officials

Inflation for the next 12 months is expected to remain lower than 4 per cent, just like it has over the past three years.  


French Development Agency pledges more support for projects in Vietnam

The French Development Agency (AFD) will increase its support and donations for projects funded by French non-governmental organisations and associations in Vietnam.

Vietnam seeks stronger education partnership with US

Minister of Education Nguyen Kim Son on September 25 concluded his US working trip that aimed to strengthen education partnership between the two countries.


Central localities likely to be hit by typhoon Noru

AI integration the inevitable path ahead

Big Data and AI will be the optimal tools to run factories in the future and digital transition will help firms optimise costs and cut emissions.

Ministry to scrutinise VietGap certifications after fake labels found on vegetables

The Ministry of Agriculture and Rural Development is investigating reports of vegetables sold in supermarkets being marked with fake Vietnamese Good Agricultural Practices (VietGap) labels.

E-commerce sector in dire need of qualified candidates

The tight supply of qualified candidates in the labour market is a glaring issue facing e-commerce firms, according to insiders.

Unique green moss-covered homes of the Tay Con Linh mountain range

It is an ideal environment for plants to flourish and thrive, including thick green moss, which ethnic people use to cover the palm-leaf roofs of their homes.

Farmers save wild birds and the environment

Farmers in different provinces throughout Việt Nam have for years spent time and effort to save wild birds, giving them a home to nest and lay eggs.

Deputy PM highlights significance of int'l solidarity, cooperation at UN session

The strengthening of international solidarity and cooperation is key to addressing interlocking global challenges, affirmed Permanent Deputy PM Pham Binh Minh while addressing the general debate of the 77th Session of the UN General Assembly.

Huge potential for luxury real estate in Vietnam

The branded residence market is gaining a stronger foothold in the Vietnamese market with potential to further develop, shaping the lifestyle of the country’s elite, according to experts.


Action plan to promote green growth in agriculture

Vietnam’s economic growth counts on high-tech FDI

Vietnam’s economic growth has been accelerating in 2022, with experts considering high-tech foreign investments as a driver.

The “seven-star” islands in Quang Ninh

Along with crystal blue sea and beaches, the 7 Sao (seven star) islands also have caves and primeval forests.

Customs you only see in Vietnam

The travel site Culture Trip has listed a number of Vietnamese customs that often surprise foreign tourists:

Investors and buyers play waiting game in credit switch

The State Bank of Vietnam finally created extra credit room for some banks on September 7. However, the extension is deemed low and may not help real estate businesses and homebuyers access feasible capital sources for their projects.