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Manage and control price of commodities which are fixed by the State and commodities subject to price stabilization under market mechanism and adjustment by the State with the goal of macroeconomic stability and inflation control. Photo H.V

Stable price level

According to report from the Department of Price management, price management in 2017 was controlled closely and actively between ministries, sectors and macro management agencies through the Steering Committee for Price Management, Macro Working Group, and Domestic Market Management Group to calculate properly and accurately public service costs (health examination and treatment and school fees), not causing big change on price level.

In 2017, the Department of Price Management took initiative in consulting and submitted documents promptly to the Ministry of Finance, and instructed and managed drastic price stabilization solutions; strengthened coordination and positive instruction of ministries, sectors and People's Committees of the provinces and cities in performing tasks. Thereby, the price of goods and services in the country in 2017 was basically stable. Demand and supply relation maintained a balance, the target of inflation control for no more than 4% could be achieved under The Government’s Resolution (Consumer Price Index (CPI). In December 2017 it increased 0.21% compared to the previous month, up 2.6% compared to the December in 2016; average CPI in 2017 increased 3.53% compare to 2016).

At the same time, the management authority has continued to manage key and essential commodities (petroleum products, electricity, coal, clean water, medicines, health services, education, rice, fertilizer, livestock feed, cement, steel ...) under the market price mechanism controlled by the State. These essential commodities were managed publicly and transparently, thereby, creating the consensus and supervision from society.

Notably, in 2017, when the market price fluctuated at a low level, the Ministry of Finance coordinated with the Ministry of Health to implement 2 steps on cost of health examination and treatment services under health insurance at the remaining 27 localities and complete this adjustment in 63/63 provinces and cities and adjustment of cost of health examination and treatment services without health insurance at 54 central hospitals. This was a basic step, and was instructed carefully on the basis of calculating scenarios and predictions affecting CPI. Thereby, taking advantage of the opportunity to manage costs of public services but still able to control inflation in 2017 according to the target.

Also in 2017, price inspection was carried out regularly and continuously. According to the Department of Price Management, in general, businesses and units basically complied with provisions of the law on price declaration and listing; provided services in accordance with listed price; specified and implemented policy on commercial discounting and making sales of goods and discounting payment in line with declared level.

Promoting growth and controlling inflation

The National Assembly approved a GDP growth target of 6.5-6.7% and inflation at 4%. According to the Department of Price Management, keeping inflation at 4% is also a challenge, when solutions to accelerate growth in 2017 such as promoting investment, or loosening outstanding credit growth or implementing market road map for cost of health service for persons who are not subject to be paid by Social Insurance in 2017, may have a late impact on CPI in 2018.

Thereby, the task of price management is to promote growth and control inflation. In 2018, the Department of Price management will continue to study to improve the legal system on price. In which, focusing on improving management mechanism and price level for services that are transferred from fee list into the management under price mechanism; continuing to perform well the task of assisting the Steering Committee for Price management and implement measures to stabilize price for key and essential goods and services.

Besides, the Department of Price Management will effectively implement the collection, analysis and prediction of market information, and promptly propose solutions to stabilize price and control inflation; supervise closely price declaration of businesses for goods subject to price stabilization and commodities subject to price declaration.

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The Department will also carefully assess impacts of price adjustment (if any) on the the socio-economic situation and CPI in order to have appropriate adjustment plans and road maps, avoiding adjustments at the same time to heighten CPI and cause inflation due to psychological aspect. In addition, strengthening the price inspection and supervision.

At the same time, continuing to manage and control prices of commodities which are fixed by the State and subject to price stabilization (petroleum products, electricity and non-business services) under market mechanism with the State’s adjustment in accordance with the target of macroeconomic stability and inflation control; to propagandize well and create social consensus when controlling prices of sensitive commodities which affect the psychology of the people.