return icon

Expert believes inflation could fall below 4% this year

With the consumer price index (CPI) increasing by 1.47% during the first half of the year, the lowest rise since 2016, it remains entirely feasible for the country to keep inflation below 4% this year.

Nguyen Thi Huong, general director of the General Statistics Office (GSO), unveiled this information during a press conference held on June 29 in Hanoi, adding that escalating prices of fuel and input materials, coupled with the rising price of electricity and water, has caused June’s CPI rise of 0.19% compared to the previous month.

She also attributed the six-month CPI increase to adjustments in the domestic price of petrol, thereby making the average price soar by 17.01% and the overall CPI increase by 0.61%.

An upturn could also be seen in the price of domestic gas, which rose by 16.51% against the same period from last year, while the price of education services throughout the reviewed period recorded an rise of 4.47%.

Meanwhile, the domestic price of rice witnessed an upward trend in line with the export price of rice, while a high demand for glutinous and plain rice during the Lunar New Year caused the price of rice during the reviewed period to increase by 6.97% on-year, making the overall CPI increase by 0.18%.

Elsewhere, housing and construction materials rose by 0.63% to push the general CPI up by 0.12%. The price of materials for housing maintenance surged by 1.26% to fall in line with the price of input raw materials and fuel.

However, there remains a number of factors which have curbed the CPI growth rate in the first half of the year. Notably, the price of food witnessed an annual fall of 0.39%, making the overall CPI decrease by 0.08%.

Following the deployment of bailout package from the Government for individuals and businesses impacted by COVID-19, the average price of electricity also dropped by 3.06%, resulting in the general CPI falling by 0.1%.

Moreover, the decline in people's travel and tourism demand due to the COVID-19 impact has also made the price of package tours plunge by 2.85% compared to the same period from last year.

Core inflation in June saw an increase of 0.07% over the previous month and 1.14% compared to last year’s corresponding period, fuelling the six-month core inflation to inch up by 0.87% from the same period last year.

Source: VOV

Many factors behind rising inflation

Many factors behind rising inflation

The 2020 Consumer Price Index (CPI) in Vietnam was contained at 3.23%, but which will be difficult to maintain at a target of 4% in 2021.


HCM City to promote AI in education sector

HCM City will need to promote the application of Artificial Intelligence (AI) in the education sector as part of its effort to become a smart city by 2030, experts said.

Additionally-registered and share-purchased FDI soars sharply in first half of 2022

Despite newly-registered FDI dropping in the first half of the year, additionally-registered and share-purchased investments increased significantly on-year.

Vietnam joins hands with France to renovate Hanoi’s Long Bien bridge

Vietnamese and French experts will join hands to renovate Hanoi City’s deteriorating Long Bien Bridge in the coming months.

Lessons learned from urban railway projects

The urban railway projects that have been and are under construction are all behind schedule, so the total investment must be adjusted.

Prices hit record high, Vietnam earns big money from catfish

Export prices have been escalating in all markets and hitting new records in the US. Vietnam’s catfish export turnover is expected to reach $2.6 billion this year, the highest in history.

Phu Dien Cham Tower in Vietnam sets world record

The central province of Thua Thien – Hue on June 27 held a ceremony to mark WorldKings’ recognition of Phu Dien Tower built by the Cham people as a world record.

Explosive e-commerce growth drives demand for logistics

The rapid growth in e-commerce is driving an unprecedented increase in demand for logistics services, including express delivery services, according to industry insiders.

Local authorities warned of easy discipline when receiving FDI

Experts have pointed out that many localities accept small-scale foreign-invested projects which don’t have much significance to the localities, and allocate too much land to these projects.

Cashew industry faces huge challenges

Vietnam exported over 206,000 tonnes of cashew nuts worth 1.19 billion USD in the first five months of 2022, down 7.81% in volume and 6.81% in value, the Vietnam Cashew Association (VINACAS) reported.

After failed deal with MobiFone, AVG finds new owner

AVG has changed hands, but it has not made an official announcement about the deal.

Hue's Dong Ba Market revamped to lure tourists

Returning to Thua Thien Hue after over two years of lockdown, Luu Hoang Long and his wife, a Vietnamese Australian, chose first to visit Dong Ba Market, the biggest traditional local shopping centre in the ancient royal city of Hue.

Retail giants to sell low-cost products

With powerful financial resources, big retailers are organizing retail chains that sell a wide variety of lower priced goods.

Five directions for internet development in Vietnam

Deputy Minister of Information and Communications Pham Duc Long pointed out five major directions for internet development with an aim of creating a safe, modern and humanitarian digital society at the VNNIC Internet Conference 2022 last week.

Homes for the elderly: new market

Although the population is aging rapidly, the nursing home market in Vietnam remains under-explored.

Vietnam proposes to issue ID cards to people without Vietnamese nationality

Non-Vietnamese nationals living in Vietnam will likely be granted an electronic identification account to perform public administrative procedures.