return icon Vietnamnet.vn

Under-4-percent inflation rate tough to complete: Experts

Vietnam is likely to complete its target of 6.5 percent in economic growth for 2022, but the goal of keeping the inflation rate under 4 percent is tough, according to Assoc. Dr. To Trung Thanh from the National Economics University (NEU).

Under-4-percent inflation rate tough to complete: Experts hinh anh 1



The increase in commodities’ prices as well as the hike in power prices due to the Russia-Ukraine conflicts are affecting domestic production cost, causing pressure on inflation in 2022, Thanh said at a national symposium to evaluate the Vietnamese economic performance and outlook for 2022, which was held in Hanoi on April 25.

Thanh noted that the 45 percent increase in petrol price will cause a rise of 0.6 percent in the consumer price index (CPI) and about 2 percent in the producer price index (PPI). Since the environmental tax rate was cut from April 1, petrol price has been up by about 41 percent, leading to a 0.5 percent rise in CPI and 2.2 percent in PPI.

According to the Vietnam annual economic report 2021, the successful control of the COVID-19 and the economic support package will help Vietnam complete the target of 6.5 percent in economic growth in 2022. However, the major economic development motivation will continue to be foreign trade, with great contributions from processing-manufacturing and export activities.

 

Under-4-percent inflation rate tough to complete: Experts hinh anh 2

The 45 percent increase in petrol price will cause a rise of 0.6 percent in the consumer price index and about 2 percent in the producer price index (Photo: VNA)

Amid the difficulties facing the private sector, the public sector is likely to make great contributions to economic growth in the year, it said, adding that the reopening of the economy will help speed up the recovery of service sector, thus promoting economic growth.

The report recommended that the Government should stick to three principles while designing policies, including focusing on economic recovery and sustainable economic development amid COVID-19, ensuring economic balance, and prioritising the business sector to create favourable conditions for its post-pandemic recovery and development. 

Regarding policies to support enterprises, the report underlined the necessity to give more practical assistance to the right recipients by narrowing the eligible beneficiaries basing on the level of the pandemic's impacts they suffer.

As for the expansion of fiscal support, the report’s research team proposed that the stronger assistance should be given to the business sector, focusing on dealing with the interruption of supply chain and rise in production cost.

Source: VNA

MORE NEWS

Fashion shows to spread quintessence of Vietnamese culture and heritage

The series is the brainchild of former supermodel Ha Vy and director Hoang Cong Cuong, who is the mastermind of several big events in Vietnam including the opening ceremony of the Southeast Asian Games (SEA Games) 31 in Hanoi in May.

Low-carbon rice production helps Vietnam meet emission target

Rice, which is Vietnam’s most important crop and grown on more than half of its agricultural land area, accounts for 48 per cent of the agriculture sector’s GHG emissions and over 75 per cent of methane emissions.

VIETNAM BUSINESS NEWS SEPTEMBER 26

Number of air passengers down 14% in September

Vietnam needs highly skilled labour force to compete

The vocational training system of Vietnam needs reforming to create highly-skilled human resources that meet the requirements of the labour market in increasingly integrated international market, experts said.

Lengthy visa process a setback for FDI firms

The visa process does not always go smoothly. Sometimes, it moves so slowly that some specialists cannot enter Vietnam on schedule, leading to production disruptions.

Petrol and oil price stabilisation fund requires thorough appraisal

The Government needs to carefully evaluate the effectiveness of the petrol and oil price stabilisation fund in keeping the commodity’s retail prices stable before deciding to maintain or eliminate the tool, experts said.

Embedded finance the next big thing: summit

Embedded finance is the next big thing in the financial services industry as it has integrated seamlessly into the local fintech landscape in recent years, experts said at a meeting last Friday in HCM City.

Entertainment and cultural events of the week (September 26-October 2)

Upcoming entertainment and cultural events in Vietnam's major cities on September 26-October 2.

VIETNAM NEWS HEADLINES SEPTEMBER 26

PM orders urgent measures against Storm Noru

Beauties wow in traditional costume contest at Miss Grand Vietnam

Vietnamese beauties boasted of their charm in a traditional costume segment of the ongoing Miss Grand Vietnam 2022 taking place on September 23.

State Bank’ rate hike necessary to defend VND, control inflation: ADB Country Director

ADB Country Director Andrew Jeffries has talked on the recent interest rate hike by the State Bank of Vietnam in the context of the Fed, ECB and a number of countries raising their rates to curb inflation.

Prop-tech has potential but faces challenges

Many prop-tech startups are facing challenges, though it is a new market with potential in Vietnam.

Prime Minister asked to stabilise rice price

India's restriction on rice exports is said to have an impact on the volume and price of Vietnamese rice exports.

Vietnamese artworks to go under the hammer in France

The auction’s highlight is Les Rapides de Cho Bo, a six-panel lacquer screen with gold highlights, painted in 1942 by Le Quoc Loc. The artwork is estimated to fetch €400,000 ($396,000), the highest price of the lot.

A pearl in mountainous province

Referred to as the “Halong Bay of the northwest region”, Nong Dung Lake has recently been attracting tourists as an ecotourism destination due to its emerald water and poetic scenery.
back_to_top