VietNamNet Bridge – Drastic price-management measures are needed to help curb inflation, stabilise the macro-economy and ensure the public's welfare, Minister of Finance Vuong Dinh Hue said.

Hue added that the country's economic woes were expected to continue throughout this year.

He said it was necessary to review the price of "sensitive" goods and services and those controlled by the State – particularly electricity, fuel, steel, food, medicines, milk, seaport services, tuition and hospital fees.

Price-forming factors also needed to be closely managed and the data used to calculate the price of State-controlled goods and services should be made public, he added.

If prices were considered unreasonable, Hue said, the authorities needed to formulate a road map for making adjustments in accordance with the market mechanism and the State management.

The ministry's Price Management Department would study and compile scenarios to adjust power and fuel prices – the two most "sensitive" goods that have been badly hit by soaring inflation and social security costs, he said.

Hue said it should not be forgotten that cost savings could also be used to reduce prices, as could money from asset liquidation, the leasing of electricity poles to telecommunications companies and foreign exchange rate fluctuations.

Inspectors from the ministry, led by Deputy Minister Tran Van Hieu, would formulate a price-management strategy with authorities in Ha Noi, HCM City, Da Nang and Can Tho, Hue said.

Meanwhile, the ministry's Corporate Finance Department has been asked to report on the financial position of the Viet Nam National Petroleum Corporation and Government support for the corporation to cover its losses, as well as the use of funds to stabilise fuel importers' prices.

VietNamNet/Viet Nam News