If prices are not controlled, people will face difficulties during Tet

	Strengthen inspection and examination in law compliance on prices
	Need to improve legal framework to support investment in real estate, preventing economic bubble
	Inflation control targets easily met despite high raw material prices

Economist Vu Vinh Phu

It is said that 2021 witnessed many factors that imposed great pressure on Vietnam’s economic development. What is your assessment on this?

2021 is the second year that Vietnam has experienced the Covid-19 pandemic. It strongly affects each family, society, and all economic activities of the country.

From the disruption of supply chains in the domestic market as well as exports to the increase in transportation costs of goods and raw materials and other costs such as container fees, gasoline prices and raw materials and auxiliary materials for production.

All of these have imposed tremendous pressure on socio-economic development during the pandemic.

Specifically, in the domestic market, while the income and purchasing power of each family decreased, the prices of goods, especially essential items, surged. In addition to the above reasons, strict regulations on travel due to the pandemic in some cities and provinces increased costs and impacted opportunities for businesses; and some traders abused the difficult times to speculate for profit and sell goods at high prices and sell poor quality goods, harming consumers.

Regarding market management, amid the complicated and difficult situation of goods and prices mentioned above, some cities and provinces have not paid attention to proper management, so counterfeit goods and goods infringing intellectual property have been sold in the market. Therefore, consumers have faced double difficulties, typically, violations on price and quality of goods of Bach Hoa Xanh - a subsidiary of Mobile World Company in the first quarter and second quarter of 2021.

If the pandemic continues, it will still be difficult to control prices. So what do we need to do to control prices?

Due to the complicated and unpredictable developments of pandemic, first of all, it is necessary to strengthen support for businesses. We must consider them as the most important part in the country's socio-economic development. If they develop they will create more jobs, increase income, and pay more to the state budget. We need to issue monetary and fiscal policies to encourage them.

In addition, it is necessary to continue to promote effective public investment, fight corruption and wastefulness in State budget spending, and quickly put works into use for production, business and daily life of people.

It is also necessary to continue administrative reforms and reduce unreasonable costs for businesses to improve the competitiveness of Vietnamese goods. It is necessary to reorganize the national distribution system to ensure the efficient consumption of commodities. If the tasks are carried out well, it will help stabilize the price market in 2022 and the following years, and achieve the target of GDP growth of 6-6.5% and CPI at 4% in 2022, and continue to stabilize the macro-economy and curb inflation in accordance with the Resolution set out by the National Assembly.

The Lunar New Year 2022 is approaching. What do you forecast about the price movements of the market on this occasion?

There is one month to the Lunar New Year 2022, that's why the preparation of commodity sources for sale at Tet must be urgent, scientific and responsible to meet the consumption needs of the people. At the same time, this is also an opportunity for Vietnam's retail industry to strive to increase revenue and profit.

I forecast some big features in the upcoming Tet. The first thing is that Tet shopping is likely to be earlier than previous years because Vietnam is still continuing to fight the pandemic, so further outbreaks are possible. Therefore, the psychology of shopping earlier is understandable.

The second thing that we need to pay attention to is that the purchasing power of the people is still weak, but when Tet comes, everyone has a need to buy more.

On the other hand, from the past few months, due to the increase in input costs of production and circulation resulting from the increase in prices of petrol, gas, etc., a new price level has been formed for many commodities on the uptrend, hitting household expenditure and reducing social purchasing power.

If prices of essential items such as food, cannot be controlled during Tet, this is really a difficulty for consumers, especially poor families and those whose incomes have declined due to the pandemic.

In particular, price management and food safety and hygiene also need special attention as consumption demand soars. Therefore, market management to protect consumers’ interests is very necessary. Fighting smuggling and counterfeit goods must be made from the border and determined to prevent contraband goods from entering the country.

I must confirm that serving consumers this Lunar New Year requires more effort than other Tet holidays. Localities throughout the country need to develop a specific, thoughtful and scientific plan.

Rice export price highest in the past two months

We believe that, with the attention of industries and levels and the efforts of businesses and the support of consumers with legitimate businesses, serving consumption during the Tet will be safe, economic and efficient.

Thank you.