Comprehensive solutions needed to keep inflation below 4%: experts

The prices of multiple products and services are forecast to rise this year, putting pressure on inflation.
comprehensive solutions needed to keep inflation below 4 experts

Shoppers inspect pork products at a local supermarket. Comprehensive solutions are needed to keep inflation below 4% this year - PHOTO: VNA

Therefore, experts told a seminar on January 3 that it is necessary to work out comprehensive solutions to curb inflation at below 4% this year.

At the seminar on the domestic market and prices in 2019 and forecasts for 2020, held in Hanoi by the Institute of Economics and Finance’s Academy of Finance and the Ministry of Finance's Department of Price Management, experts questioned the likelihood of achieving the target.

Nguyen Duc Do, deputy director of the Institute of Economics and Finance, was cited by Vietnamplus news site as saying that the country’s inflation target would be hard to achieve as pork prices have surged since the last quarter of last year.

In the worst-case scenario, if African swine fever is not curtailed by the first half of this year and inflation starts to decline by mid-year, it will be difficult to keep inflation below 4%.

In addition, Vietnam has set an ambitious gross domestic product growth target in 2020, at 6.8%, while its growth model still depends on input factors, such as capital, which puts pressure on inflation.

However, if the exchange rate is kept stable using the high foreign currency reserves and the State Bank of Vietnam still pursues a cautious policy approach, the country’s consumer price index (CPI) may rise by 3.5% this year.

A representative of the Department of Price Management, under the Ministry of Finance, said that pork prices are forecast to continue rising in the first months of this year. The prices of healthcare and education services as well as land may also increase.

Therefore, the prices of goods should be managed in a cautious and flexible manner to help obtain the inflation target.

The Ministry of Finance suggested not adjusting public services fees in the first quarter of the year and tightening control over the prices of goods before, during and after the Tet holiday, especially for pork and entertainment and catering services.

Ministries, agencies and localities must keep a close watch on the market to work out solutions to stabilize the prices of essential products and ensure an adequate supply of goods to prevent potential price hikes.

Le Quoc Phuong, former deputy director of the Industry and Trade Information Center of the Ministry of Industry and Trade, also proposed the Government continue adopting policies to control inflation and ensure the adequate supply of goods.

In the long term, solutions are needed to curtail gossip that raises consumer concern and encourages market volatility. Economic growth based on input factors, such as capital, manpower and natural resources, must move to a growth model based on innovation and advanced technology.

According to a report by the Institute of Economics and Finance delivered at the seminar, Vietnam's CPI last year picked up by 2.79% over 2018, well below the ceiling approved by the National Assembly. The rate was the lowest in three years.

Nguyen Ba Minh, director of the Institute of Economics and Finance, attributed the CPI rise to the electricity price hike in March last year and the higher hospital services prices, sending the CPI up by 0.18%.

In addition, the prices of food posted an increase of 5.08%; beverages and tobacco, 1.79%; and public transport services, 3.02%.

Phuong from the Industry and Trade Information Center said the targeted inflation of below 4% was a result of the Government’s efforts to stabilize the economy, ensure an adequate goods supply, adopt effective control over credit and hold higher foreign currency reserves.

However, the December 2019 CPI rose 5.23% against the same month in 2018, the highest since 2014.

Source: Saigon Times

Related News

The impact of wage increases on inflation will not be too significant

The impact of wage increases on inflation will not be too significant

VCN - Addressing concerns related to wage and price increases, Dr. Nguyen Duc Do, Vice Director of the Institute of Economics - Finance (Finance Academy), believes there are not many factors causing sudden price surges in the last 6 months of 2024. Therefore, it can be expected that the rate of price increases in the last 6 months will be comparable to that in the first 6 months of 2024.
Hai Phong Customs increases by nearly VND1,300 billion in revenue

Hai Phong Customs increases by nearly VND1,300 billion in revenue

VCN - Positive growth in budget revenue is one of the important and outstanding results of Hai Phong Customs Department in the first six months of 2024.
Quang Ninh Customs strives to exceed budget revenue targets

Quang Ninh Customs strives to exceed budget revenue targets

VCN - In the second half of 2024, Quang Ninh Customs needs to focus on implementing the task of building digital border gates; striving to complete and exceed assigned budget revenue targets, contributing to the overall achievements of the entire Customs sector.
Finding solutions to prevent fake goods, goods infringing intellectual property rights

Finding solutions to prevent fake goods, goods infringing intellectual property rights

VCN - Production activities and sales of counterfeit goods and goods infringing intellectual property rights will affect the reputation and prestige of the brand, change consumer perception of product quality and legitimate businesses.

Latest News

(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics

(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics

Vietnam bamboo diplomacy, Party General Secretary Nguyen Phu Trong, Vietnamplus, Vietnam News Agency
Prime Minister

Prime Minister's telegram promoting growth, controlling inflation, and stabilizing the macroeconomy in July and the third quarter of 2024

VCN - Prime Minister Pham Minh Chinh has just signed and issued Official Dispatch No. 71/CD-TTg dated July 21, 2024 on key tasks and solutions to promote growth, control inflation, and stabilize the macro economy in July and the third quarter of 2024.
Gov’t unveils action plan to accelerate industrialisation

Gov’t unveils action plan to accelerate industrialisation

The Vietnamese Government has outlined a comprehensive action plan to continue fasttracking the country's industrialisation and modernisation by 2030, with a long-term vision extending to 2045.
Ho Chi Minh City enterprises overcoming difficulties

Ho Chi Minh City enterprises overcoming difficulties

VCN - The economy of HCM City has gradually moved through the first half of 2024 with many positive signs. Business activities are stabilizing and recovering, with export orders in sectors such as wood, textiles, food, and beverages surging.

More News

PM asks for all efforts to ensure sufficient supply of electricity, petroleum products

PM asks for all efforts to ensure sufficient supply of electricity, petroleum products

Prime Minister Phạm Minh Chính asked relevant agencies and authorities to ensure sufficient supply of electricity and petroleum products in all situations.
Ministries asked to review and revise policies on infrastructure development

Ministries asked to review and revise policies on infrastructure development

A plan outlines key tasks and solutions to develop a modern and synchronous infrastructure system with focus, priority on key areas, and advanced steps ahead.
Vietnam

Vietnam's GDP in 2024 could achieve nearly 7% growth

VCN - According to Nguyen Anh Duong, Head of the General Research Department at the Central Institute for Economic Management (CIEM), Vietnam achieved significant socio-economic results in the first half of the year. Based on these outcomes, CIEM has developed two macroeconomic forecast scenarios for 2024.
Foreign diplomats hail late Party chief’s role in Vietnam’s modern history

Foreign diplomats hail late Party chief’s role in Vietnam’s modern history

Party General Secretary Nguyen Phu Trong holds an enormous role in the development and achievements of Vietnam, in terms of both domestic and external affairs, said foreign diplomats who used to work in the country.
Highest determination to remove IUU "yellow card".

Highest determination to remove IUU "yellow card".

VCN - The 5th inspection of the European Commission (EC) is expected in October 2024, which is the decisive time for Vietnam to remove the "Yellow Card" warning in 2024. This is considered an important and urgent and important task because the EU is in the top 5 largest export markets of Vietnamese seafood, after the US and China.
Party General Secretary Nguyen Phu Trong passes away

Party General Secretary Nguyen Phu Trong passes away

General Secretary of the Communist Party of Vietnam Central Committee Nguyen Phu Trong passed away on July 19 afternoon at the age of 80, according to the board of health protection and care for central officials.
The trend of GDP acceleration is increasingly clear

The trend of GDP acceleration is increasingly clear

VCN - In the context of a world economic recovery trend, our country's economic growth in the first six months of 2024 continues to prosper with an increase of 6.42%. This result is higher than the upper target growth rate set in Resolution 01/NQ-CP of the Government, and is considered a positive sign for the growth target for the whole year 2024.
The new Land law 2024 expected to boost foreign investment

The new Land law 2024 expected to boost foreign investment

VCN - With the new features and improvements in the Land Law 2024 for investors, Vietnam expects to welcome a new wave of foreign direct investment (FDI), especially for large projects.
PM calls for all-people, comprehensive digital transformation

PM calls for all-people, comprehensive digital transformation

Prime Minister Pham Minh Chinh on July 19 called for the all-people and comprehensive digital transformation, with the engagement of the whole political system, people and enterprises in the development of digital infrastructure, completion of the digital institutions and human resources training, so that Vietnam can catch up with and be on par with other nations amidst global headwinds.
Read More

Your care

Latest Most read
(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics

(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics

Vietnam bamboo diplomacy, Party General Secretary Nguyen Phu Trong, Vietnamplus, Vietnam News Agency
Prime Minister

Prime Minister's telegram promoting growth, controlling inflation, and stabilizing the macroeconomy in July and the third quarter of 2024

Prime Minister Pham Minh Chinh has just signed and issued Official Dispatch No. 71/CD-TTg dated July 21, 2024 on key tasks and solutions to promote growth, control inflation, and stabilize the macro economy in July and the third quarter of 2024.
Gov’t unveils action plan to accelerate industrialisation

Gov’t unveils action plan to accelerate industrialisation

The Vietnamese Government has outlined a comprehensive action plan to continue fasttracking the country's industrialisation and modernisation by 2030, with a long-term vision extending to 2045.
Ho Chi Minh City enterprises overcoming difficulties

Ho Chi Minh City enterprises overcoming difficulties

VCN - In the first half of 2024, reports from the HCM City Union Business Association (HUBA) indicated that the activities of most businesses in the area were stabilizing.
PM asks for all efforts to ensure sufficient supply of electricity, petroleum products

PM asks for all efforts to ensure sufficient supply of electricity, petroleum products

Prime Minister Phạm Minh Chính asked relevant agencies and authorities to ensure sufficient supply of electricity and petroleum products in all situations.
Mobile Version