Inflation to decrease this year

VCN - This information was given at the workshop ‘Price, Market Development in Vietnam in 2022 and forecasts for 2023’ held on Tuesday January 4.
Tax sector has prepared scenarios to implement revenue collection Tax sector has prepared scenarios to implement revenue collection
Coordination to effectively operate the Coordination to effectively operate the "valve" of credit
Loosening the credit room will not increase inflation Loosening the credit room will not increase inflation
The workshop. Photo: TL
The workshop. Photo: TL

Inflation control in 2022 reached the targets

2022 recorded a strong economic recovery in all aspects, the increase in demand for production to serve the country’s consumption and exports and the impacts of the world’s prices pushed prices of essential goods and services but the price level was still controlled.

Average CPI in 2022 and core inflation rose 3.15% and 2.59% year-on-year respectively. The price management and the inflation control reached the targets set out by the Government and the National Assembly (below 4%), said the Director of Price Management Department, Ministry of Finance Nguyen Minh Tien.

Mr. Tien said that to achieve this result, the Ministry of Finance as the Standing Price Steering Agency worked with the Ministry of Planning and Investment, State Bank of Vietnam and relevant ministries and agencies to actively forecast factors affecting inflation, build scenarios and solutions to manage price as well as regularly monitor price movements to report the Government and Prime Minister to have appropriate solutions to control inflation.

In addition, the Ministry of Finance has coordinated with other ministries and agencies to propose solutions to manage the prices of some essential goods, contributing to stabilizing the price level and reducing negative impacts on socio-economic development.

Assessing inflation in 2022, Dr. Nguyen Duc Do said the inflation rate in Vietnam was still much lower than the target of 4%. This is a low rate compared to developing countries, such as the US.

Mr. Nguyen Duc Do said this achievement resulted in redundant production capacity, so enterprises could not push up prices. This is a factor controlling inflation of some items such as food and food products as well as necessities.

Although the price level in 2022 was negatively impacted by the high increase in global petroleum and material prices, Vietnam offered solutions to control import inflation including maintaining USD/VND exchange rate (monetary policy); reducing green tax on petrol and oil (fiscal policy).

“Moreover, the Government controlled the price of some items such as health services, education, and electricity. The focus on cost factors is a difference leading to the effectiveness of the inflation control in Vietnam compared to many other countries in 2022,” said Nguyen Duc Do.

Inflation pressure will decrease in 2023

Entering 2023, it is forecast that the world economy will see slow growth, high inflation and the possibility of economic recession will become clearer, especially in major economies, expanding the risk of political and social instability in some countries; strategic and geopolitical competition between countries in the world will keep going; financial and monetary markets of developing countries face many risks; energy security, food security, natural disasters, epidemics, climate change, storms, floods, and droughts will continue to be issues of concern.

According to the leader of the Price Management Department, Vietnam’s economy heavily depends on imported materials, so the country may face import inflation before the increase in prices of materials and strategic products in the world market and exchange rate risk.

Furthermore, the pressure from the postponement of the implementation of the market price roadmap of some items managed by the State also imposed challenges for price management from the beginning of the year. And, support policies will have certain impacts on the price level.

However, Mr. Nguyen Duc Do said the pressures on inflation such as currency, exchange rate or material price might reach a peak in 2022 and will reduce in 2023. In fact, the inflation showed signs of decreasing in December 2022 when the core inflation only rose 0.33% from the previous month. But, the pressure of the increase in electricity prices and prices of other services managed by the State in 2023 will be higher than it in 2022 and its impacts will depend on time and price management of the State authority.

Monetary policy must prioritize inflation control Monetary policy must prioritize inflation control

VCN - According to Assoc. Prof. Dr Pham The Anh, Chief Economist of the Vietnam Center for ...

“In the near future, inflation in Vietnam will tend to decrease after the peak thanks to the prudent monetary policy of the State Bank in 2022, as well as the risk of the world economy’s recession. Inflationary pressure in 2023 may come from the State's adjustment of prices for health and education services as well as electricity prices. However, if the price adjustment is made in the second half of 2023 with an insignificant adjustment, the target of controlling inflation around 4.5% or even below 4% is completely feasible,” said Nguyen Duc Do.

By Thuy Linh/ Huyen Trang

Related News

Pangasius exports are forecasted to bounce back at the end of the year

Pangasius exports are forecasted to bounce back at the end of the year

VCN - It is forecasted that pangasius exports is forecasted to be better from the third and fourth quarters of 2024, leading to the uptrend being adjusted to increase by at least about 10% compared to the current price.
Positive economic transformations in four months

Positive economic transformations in four months

VCN - In the context of global difficulties and challenges, Vietnam's socio-economic situation in April continues to undergo quite positive transformations, contributing to improving the overall results of the first four months of the year and setting the pace for the following months.
Production ensures export of 7.4 million tons of rice this year

Production ensures export of 7.4 million tons of rice this year

VCN - By the end of the first quarter of 2024, rice exports continued to increase by 17.6% in volume and 45.5% in turnover compared to the first quarter of 2023, reaching over 2.18 million tons, equivalent to nearly US$ 1.43 billion, average price US$ 653.9 /ton.
Closely monitoring market fluctuations to consider appropriate time to adjust prices

Closely monitoring market fluctuations to consider appropriate time to adjust prices

VCN - According to a report from the Ministry of Finance, in the second quarter and the remaining months of 2024, price management and administration need to ensure good control of inflation and continue to remove difficulties for production and business.

Latest News

Developing State budget estimates for 2025: carefully taking factors increasing, decreasing and shifting revenues into account

Developing State budget estimates for 2025: carefully taking factors increasing, decreasing and shifting revenues into account

VCN - The Ministry of Finance is developing a circular guiding the development of state budget estimates for 2025 and the 3-year state budget and financial plan for the 2025-2027 period; 5-year financial plan for the 2026-2030 period.
Ministry of Finance proposes seven solutions for combating tax evation for e-commerce

Ministry of Finance proposes seven solutions for combating tax evation for e-commerce

VCN - Vietnam e-commerce will reach US$30.5 billion in 2035 hence according to Minister of Finance Ho Duc Phoc, it will pose challenges to the management of tax, quality of goods, and anti-fraud.
Banks are ready to deploy biometric authentication

Banks are ready to deploy biometric authentication

VCN - According to Decision No. 2345/QD-NHNN dated December 18, 2023 of the State Bank, which will take effect from July 1, money transfer transactions over 10 million VND/time or over 20 million VND/day will require facial authentication. Accordingly, banks are urgently preparing to be ready to implement new regulations within the set deadline.
Review the tax payment of sales livestream individuals

Review the tax payment of sales livestream individuals

VCN - The General Department of Taxation has just issued an official letter directing local tax departments to drastically manage e-commerce taxes and electronic invoices generated from cash registers.

More News

13 cases subject to direct tax registration with Tax authority

13 cases subject to direct tax registration with Tax authority

VCN – The Ministry of Finance collects comments on a draft Circular guiding tax registration to replace Circular 105/2020/TT-BTC. According to the draft, if the National Population Database
Ministry of Finance: Focusing on improving independent audits

Ministry of Finance: Focusing on improving independent audits

VCN - According to Minister of Finance Ho Duc Phoc, in recent times, the Ministry of Finance has focused on improving the quality of independent audits through training, inspection, and examination.
Digitizing the process, banks actively lend online

Digitizing the process, banks actively lend online

VCN - Many banks promote online lending to save time and costs for both parties and creating conditions to promote credit growth.
The finance sector

The finance sector's firm stance on combating tax evasion in e-commerce

VCN - Addressing and clarifying some opinions raised by National Assembly deputies during the questioning session on issues related to the commerce and industry sectors on the afternoon of June 4, Minister of Finance Ho Duc Phoc stated that in the coming period, the finance sector would rigorously enforce tax collection on e-commerce to ensure fairness in the fulfillment of taxpayers' obligations.
Total State revenue managed by Tax sector is estimated at VND767,415 billion

Total State revenue managed by Tax sector is estimated at VND767,415 billion

VCN – The total state revenue in the first five months of 2024 managed by the Tax authority is estimated at VND 767,415 billion, meeting 51.6% of the target and 114.9% year-on-year.
Tax sector cooperate with Police agency to prevent fraud of tax invoice

Tax sector cooperate with Police agency to prevent fraud of tax invoice

VCN - Over the years, the acts of law violation on electronic tax invoices took place complicatedly with many different tricks. To prevent fraud, the tax sector has applied several drastic measures, including strengthening cooperation with the Police agency.
Over 4.49 billion USD raised through G-bond auctions in five months

Over 4.49 billion USD raised through G-bond auctions in five months

The State Treasury mobilised more than 127 trillion VND (4.49 billion USD) from G-bond auctions on the Hanoi Stock Exchange (HNX), or 31.76% of the annual plan.
Five-month budget revenue reached half of the whole year 2024 revenue estimate

Five-month budget revenue reached half of the whole year 2024 revenue estimate

VCN - According to the Ministry of Finance, in May 2024, total state budget revenue is estimated to reach VND150.9 trillion. In the first five months of 2024, total budget revenue is estimated to reach VND898.4 trillion, equal to 52.8 percent of the estimate.
Bank savings of individual customers recover while institutional savings decline

Bank savings of individual customers recover while institutional savings decline

Deposits of individual customers at banks have increased again since February this year, after declining in January, the latest statistics from the State Bank of Vietnam (SBV) showed.
Read More

Your care

Latest Most read
Developing State budget estimates for 2025: carefully taking factors increasing, decreasing and shifting revenues into account

Developing State budget estimates for 2025: carefully taking factors increasing, decreasing and shifting revenues into account

VCN - The Ministry of Finance is developing a circular guiding the development of state budget estimates for 2025 and the 3-year state budget and financial plan for the 2025-2027 period; 5-year financial plan for the 2026-2030 period.
Ministry of Finance proposes seven solutions for combating tax evation for e-commerce

Ministry of Finance proposes seven solutions for combating tax evation for e-commerce

Vietnam e-commerce will reach US$30.5 billion in 2035 hence according to Minister of Finance Ho Duc Phoc, it will pose challenges to the management of tax, quality of goods, and anti-fraud.
Banks are ready to deploy biometric authentication

Banks are ready to deploy biometric authentication

VCN - VPBank recommends that, to avoid transaction interruptions, customers proactively update their account information according to their chip-embedded citizen identification card before July 1.
Review the tax payment of sales livestream individuals

Review the tax payment of sales livestream individuals

The General Department of Taxation has just issued an official letter directing local tax departments to drastically manage e-commerce taxes and electronic invoices generated from cash registers.
13 cases subject to direct tax registration with Tax authority

13 cases subject to direct tax registration with Tax authority

VCN - Notably, Article 4 of the draft Circular stipulates that taxpayers subject to direct tax registration with tax authorities include: taxpayers subject to tax registration through the interconnected single-window mechanism; Taxpayers subject to direct
Mobile Version