return icon

Vietnam’s inflation remains under control: Finance ministry

Fiscal policies such as tax cuts and freezing of payments have been supportive of the overall efforts of keeping inflation at bay.

Vietnam has succeeded in containing the inflation despite the high inflationary pressure on the economy, according to Deputy Minister of Finance Vo Thanh Hung.

Deputy Minister of Finance Vo Thanh Hung. Source: MoF

In the first quarter of 2022, Vietnam’s consumer price index, the main gauge of inflation, rose by 1.92% year on year.

According to Hung, such an expansion rate remains moderate taking into account the high inflation around the world.

“Fiscal policies such as tax cut and freezing of payment have been supportive to the overall efforts of keeping inflation at bay,” Hung told the local media.

In February, inflation in the US expanded by 7.9% year-on-year, the highest level seen in January 1982, while that in the UK rose to a 30-year high of 6.2% during the same month.

Countries in the Southeast Asian region also saw inflation go up in February.

On measures to curb rising inflation, Hung pointed out the National Assembly (NA)’s decision to cut the value-added tax (VAT) by 2% for services and goods, as well as further reduction in taxes and fees on other products, including a lower registration fee for domestic cars and an environmental protection tax cut on jet fuel prices.

In the latest move, the NA decided to slash the environmental protection tax on gasoline and petrol products by 50%, which directly led to a reduction of VND2,200 per liter of gasoline, and VND1,100 per liter of diesel, mazut, or kerosene products.

“It is estimated that total cut in taxes and fees would be around VND88-90 trillion ($3.8-3.9 billion),” Hung said.

In addition, the MoF is planning to propose a delay in the payment of taxes and land rental fees worth VND135 trillion ($5.9 billion) in the next nine months.

“This is seen as a loan with 0% interest rate for businesses so that part of their financial difficulties could be relieved,” Hung added.

To ensure the inflation stays within the 4% target set by the NA, Hung stressed the necessity for Vietnam to continue reducing the impacts of cost-push inflation; promote the aggregate supplies; ensure macro-economic stability.

“The MoF would continue to monitor the market situation, especially prices of key commodities for timely intervention if needed,” Hung said.

Principal Country Economist of the ADB in Vietnam Nguyen Minh Cuong told The Hanoi Times the Government’s recent cut in environmental protection tax on petrol products came at the right timing to relieve inflationary pressure on the economy.

“As room to further maneuver fiscal and monetary policies has been limited, price management is a key tool for the government, especially prices of petroleum products,” he said.

Cuong, meanwhile, noted a slowing global recovery, a surge in global oil prices due to the Russia-Ukraine conflict would directly affect Vietnam’s external trade and domestic oil prices, subsequently impacting inflation.

“Uncertainties in the global financial markets and the withdrawal of monetary and fiscal accommodation by advanced economies would weaken the dong, the local currency, rendering imports more costly and putting additional upward pressure on inflation,” he concluded.

ADB’s latest report on Vietnam’s economic outlook forecast that inflation would remain around 3.8% in 2022, within the target, and accelerate to 4% in 2023.

Source: Hanoi Times


Opening the Internet in Vietnam: a brave decision

Former Deputy Prime Minister Nguyen Khanh said Vietnam could have opened the internet sooner but it needed to prepare well in technique, human resources, policies, and more importantly, ideology.

'Make in Vietnam' instrumental in going global

Digital technology industry as a bright spot in the economy with an industry-wide revenue of $148 billion, up 10 per cent against 2021.

'La Nina' likely to cause severe cold weather next month for third year running

The average temperature this month could be lower than the previous years by half a degree. Temperatures next month will be similar to previous years.

Two Vietnamese films up for consideration at Oscars

Two Vietnamese movies have been named among Animated, Documentary and International Features nominees for consideration at the 95th Academy Awards (Oscars), as announced by the Academy of Motion Picture Arts and Sciences (AMPAS).

The firefighters who died for others

Four months have elapsed since the day the three firefighters of the Cau Giay District Police in Hanoi sacrificed themselves in service, but their parents, wives and children’s sadness has not subsided.

Reviving investors’ confidence key to restoring bond market health: experts

While it is urgent to tackle the liquidity problem, a fundamental solution is regaining investors’ confidence and stabilising the corporate bond market, experts said.

Prime Minister starts official visit to Luxembourg

Prime Minister Pham Minh Chinh landed at Findel Airport this morning (local time), starting his official visit to Luxembourg at the invitation of Luxembourger Prime Minister Xavier Bettel.

Vietnam co-hosts seminar on UNCLOS’s outcomes

Vietnam, in coordination with Greece, Egypt and Senegal, on December 8 hosted a workshop on achievements and challenges since the adoption of the 1982 United Nations Convention on the Law of the Sea (UNCLOS) 40 years ago.

EU, Vietnam urged to expand cooperation in tackling climate change

Vietnam and the EU should work together to accelerate the transition towards “a carbon-neutral, resource-efficient and circular economy” to tackle climate change, the European Commissioner for the Environment, Oceans and Fisheries has said.

Young couple dream of introducing Vietnamese salt to the world

With their great love of traditional salt, Ho Van Vinh and Tran Thi Hong Tham want to bring rustic and traditional products of their homeland to the world.

Food-delivery apps need to focus on sustainable growth

By offering many promotions, food delivery apps can quickly gain market share, but they also end up creating unsustainable growth.

Ethical livestock-farming a growing trend in Vietnam

In addition to standards in hygiene, the livestock industry is having to pursue ethical standards while the food processing industry has set stricter rules for materials.

Big players compete for $5 billion 'fast-delivery' market

Freight-forwarding companies have been expanding their networks to shorten delivery time amid stiff competition.

Vietnamese investors to reap fruit from overseas projects

A government report shows that as of December 31, 2021, total overseas investment capital of Vietnamese enterprises had reached $6.61 billion.

Vietnam consumes fewer eggs, less meat than Asian countries

Every year sees each Vietnamese person consumes roughly 55kg to 57kg of meat of all kinds, as well as between 130 to 135 eggs, equal to between 70% and 80% of other Asian countries such as Japan and the Republic of Korea.