return icon

Low inflation gives high hopes to businesses

 VietNamNet Bridge – Stable prices are believed to be good news for national economy and businesses, but economists say government policies are even more important.

VietNamNet Bridge – Stable prices are believed to be good news for national economy and businesses, but economists say government policies are even more important.


The consumer price index (CPI) often increases in the last months of years, but the CPI in November decreased by 0.27 percent as reported by the General Statistics Office (GSO).

Dr. Le Dang Doanh, a renowned economist, commented that this was good for the national economy, which shows more stable macroeconomic conditions. The high inflation in the past was described as an “intangible tax” imposed on consumers and businesses.

Doanh pointed out that the sharp fall of global oil prices was the main reason behind the low CPI increase. The oil price decrease has led to a drop in petrol price, which influences prices of other kinds of goods and services in the national economy.

Vietnam, as a big importer, has also benefited from the import of fertilizer and products made of oil as the prices have decreased.

Dr. Nguyen Hong Son, president of the Economics University, an arm of the Hanoi National Economy, believes that the inflation rate will be low in 2015 as well.

However, he said in VnExpress, it is difficult to say how the low inflation will impact the national economy. “Whether businesses can benefit from the low inflation depends on the policies the government sets up in such conditions,” he said.

The lower inflation rate will widen the gap between the nominal and real exchange rates, which would attract the foreign capital flow to Vietnam.

“The dong/dollar exchange rate has been stable. It is now necessary for state management agencies to apply measures which can both help stabilize the macro- economy and narrow the gap between the interest rate and the exchange rate,” he said.

Dr. Doanh also noted that Vietnam cannot “rest on the low inflation rate”, because there are too many things which still need to be done.

“As the total demand of the national economy is weak and people still are fastening their belts, enterprises still cannot scale up their production,” Doanh noted.

“Low inflation is really an encouraging achievement, but it is necessary to stimulate the demand,” he added.

Dau tu chung khoan reported that some economists have called on commercial banks to ease the interest rates now that inflation rate is low. The CPI in November decreased by 0.27 percent. Meanwhile, the CPI increase in the first 11 months of the year is 2.08 percent only, a 10-year low.

The experts said the ceiling deposit interest rate should be eased by another 0.5 percent to pave the way for lending interest rates to be lowered.

Nguyen Tri Hieu, a renowned banking expert, has also urged slashing the interest rate, which is a prerequisite for the interest rate floating. “It is now or never,” he said.

Thanh Mai


Egg coffee – the unforgettable taste of Hanoi

Coffee, enjoyed any time of the day, now comes in different variants. Of them, egg coffee in Hanoi is one of the most popular.

Transport Ministry asked to disburse huge public investment capital in 2023

The Ministry of Transport's Department of Planning and Investment Director Bui Quang Thai said the plan on disbursing VND94.14 trillion for projects with completed procedures has been determined.

Runner Chinh back on track for SEA Games

Sprinter Le Tu Chinh has been back in action after months of absence because of injury.

Women’s football season begins with two events in February

Woman footballers will take part in the National Women’s Cup to warm up for the World Cup later this year.

Multilateral diplomacy hoped to help Vietnam become modern industrial country by 2045

Deputy Minister of Foreign Affairs Do Hung Viet has highlighted the role of multilateral diplomacy in realising the dream of building Vietnam into a modern industrial country by 2045.

Vietnam faces huge inflationary pressure in 2023: expert

The demand-pull and cost-push inflation will put pressure on the country's efforts to control inflation amid surging demand and strengthening of the US dollar which yields increased import prices.

Familiar faces seen daily in prime-time TV series

Frequently appearing in prime-time TV series, many actors and actresses have become uninspiring in audiences’ eyes.

Ly Quoc Su Food Street: not only famous for pho

Foodies are in a fever of Ly Quoc Su culinary alley, where unassuming and bargain-priced dishes typical of Hanoi cuisine are offered.

Digital technology to spearhead Vietnam’s drive for Industry 4.0

By 2025, the Ministry of Information and Communications expected Vietnam to have 80,000 digital tech firms, meeting at least 50% of digital tech and services from state agencies.

Local movies slump in the last year

2022 was a tough year for Vietnamese filmmakers as movie revenue dropped by 50-70 per cent as audiences stayed away from theatres amid the lingering impact of the COVID-19 pandemic and the poor quality of local films.

Vietnam's food and beverage industry to do well this year despite modest economy

The food and beverage market is forecast to grow by over 18 per cent this year to VND720 trillion (US$31 billion).

Vietnam has potential to be top infertility treatment destination

Furthermore, compared to other regions and countries, the cost of infertility treatment in Vietnam is significantly lower.

Aviation, tourism sectors expected to boom in 2023

According to forecasts, Vietnam's international arrivals can fully recover to pre-pandemic levels in 2024 (equal to 105.2% of 2019's level) and possibly equal to 118.9% of 2019's level in 2025.

FDI to Vietnam’s real estate rises by over 70% in 2022

Vietnam's real estate market continues to show strong appeal to foreign investors despite global economic difficulties.

Licenses to be revoked for some petrol distributors

The Ministry of Industry and Trade (MOIT) has issued a series of decisions on revoking certificates for petrol distributors.