Latest News about inflation
Prolonged social distancing measures and restrictions on mobility have put significant pressure on Viet Nam's effort to control inflation in 2022, economists have said.
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.
In a bid to continue successfully controlling inflation this year amid a rise in local consumption, the government is taking drastic action, with the stabilisation of prices of key items in the market a priority.
Input cost inflation is the main concern for the second half of 2021.
Vietnam’s consumer price index (CPI) is set to average 2.89% in 2021, below the government’s target of 4%.
Vietnam’s economy with high level of openness could be susceptible to rising inflation as a result of growing global commodity prices.
Vietnam is likely to meet its target of reining in inflation at a rate of below 4% in 2021, although experts warn that unfavourable factors could impact market fluctuations.
Although many forecasts said that inflation would be controlled at less than four per cent this year, economists recommended it was still important to pay attention to inflationary pressures.
The inflation in 2020 is forecast at 3.3%, significantly lower than the target of 4% set by the government.
The big rise in public investment disbursement will not cause high inflation this year due to a decline in public and business demand and oil price, as well as government efforts to stabilise prices.
As many companies cope with debts caused by the economic fallout due to the pandemic, they are unable to take loans for maintaining or expanding their business lines.
As demand is weak, the goal of curbing the inflation rate at below 4 percent is reachable. The concern now is that people do not want to borrow capital, according to Can Van Luc from BIDV.
With the new threshold in place, set to take effect from January 1, 2020 retrospectively, there would be more than 1 million people whose incomes are not taxable.
Despite a four-month high in the consumer price index, Vietnam will likely be successful in reining in inflation this year thanks to a decline in oil price and public demand, as well as the government’s efforts to stabilise prices in the market.
The central bank of Vietnam had previously cut the benchmark interest rates by 0.5 – 1 percentage point in March.
Prime Minister Nguyen Xuan Phuc requested more drastic measures to prevent speculation, price increases, and market devaluation when chairing a meeting of the National Steering Committee for Price Management on April 21.
Taking tough measures for the safety of people has become the government's top priority.
Vietnam is likely to experience difficulties in controlling inflation this year due to global uncertainties and unexpected price rises of many items in the local market in the wake of the ongoing coronavirus epidemic.