Update news inflation
The forex market has seen heavy fluctuations amid a tense situation as the US has raised interest rates as well as other central banks. The high prices of USD have affected the Vietnamese dong.
The State Bank of Vietnam (SBV) has given credit room extension to some commercial banks, paving the way for more money to be pumped into the economy. But capital is being released in dribs and drabs.
Inflation in many developed economies has led to a sharp decline in the demand for many of Vietnam’s export products.
The nation has seen food prices remain stubbornly high despite the recent sharp decline in gasoline prices.
After two years of enforcement, the EU - Vietnam Free Trade Agreement (EVFTA) has generated initial results, but rising inflation in the EU and the euro depreciation are affecting Vietnamese firms, requiring urgent solutions to those difficulties.
Lending interest rates in the remaining months of this year will stay relatively stable to help firms recover production after the pandemic.
The State Bank of Vietnam is facing multiple pressures in 2022 in managing the foreign exchange rate
The Ministry of Finance again proposed the Government lower the MFN tariff on unleaded gasoline to 10% from 20%, instead of 12% as earlier suggested, apart from efforts to cut the environmental protection tax on fuels to the floor level.
“VND50,000 please. No, just VND30,000." “VND100,000, please. No, only VND70,000." These were conversations I heard yesterday at a filling station.
The economic crisis caused by the Covid-19 pandemic has been followed by the economic crisis associated with the Russia-Ukraine conflict.
The petrol price hike has led to price escalations of major goods and services, forcing low-income earners to tighten their belts.
If inflation cannot be controlled and Vietnam has to use a “high-dose drug”, such as an interest rate increase, serious consequences may occur.
The goal of maintaining inflation at 4% this year will be threatened unless viable solutions are introduced in a bid to rein in rapidly-increasing petrol prices, according to economic experts.
The world is witnessing the highest inflation in decades. Many economies around the world face a risk of recession.