Solutions to " remove the detonator" of inflation in 2024

VCN - Ms. Nguyen Thu Oanh, Director of the Price Statistics Department, General Statistics Office, assessed that the main factors that could put pressure on inflation in 2024 are globally high input material prices, and Vietnam as a country importing many raw materials for production so it will affect costs and prices, putting pressure on businesses' production and thereby pushing up the prices of domestic consumer goods.
Control inflation expectations Control inflation expectations
Inflationary pressure to ease in 2024: Economists Inflationary pressure to ease in 2024: Economists
Reducing pressure on inflation control and price market in 2024 Reducing pressure on inflation control and price market in 2024

Vietnam has been successful in controlling inflation

According to the assessment of the General Statistics Office, the world commodity market in 2023 will have many fluctuations and be influenced by economic, political and social factors. The military conflict between Russia and Ukraine continues along with increasing instability in the Middle East. Many countries maintain tight monetary policies, weak aggregate demand, and slow economic growth, while the financial, monetary, and real estate markets in some countries have many potential risks.

Extreme weather conditions occur in many places, prolonged droughts on a large scale, storms and floods, and natural disasters in many countries cause imbalance in food production and consumption. Global inflation from the beginning of the year until now has tended to decrease gradually after countries simultaneously raised interest rates to curb inflation along with falling energy prices. But compared to long-term goals, current inflation levels remain high for many countries.

In this context, domestically, the Government and the Prime Minister have proactively, drastically and closely directed ministries and branches to implement many solutions to remove difficulties, promote growth and maintain the stability of macroeconomics, controlling inflation, ensuring major balances of the economy. Thanks to that, in 2023, January CPI increased by 4.89%, inflation pressure was huge but then gradually decreased, by June the increase was only 2%, by December it increased by 3.58%. The average inflation for the whole year of 2023 was 3.25%, meeting the target set by the National Assembly.

Such results were achieved because during the year many solutions were actively implemented such as: reducing lending interest rates, stabilizing the foreign exchange market; promote disbursement of public investment capital; deploy credit packages to support industries and fields; Reduce value added tax on some groups of goods and services from 10% to 8% from July 1, 2023; Reduce environmental taxes on jet fuel; exemption, reduction, extension of taxes, fees, land use fees, and business support; visa extension for tourists; remove difficulties and obstacles in the corporate bond and real estate markets; Social security work is paid attention to.

Accordingly, the market for essential goods has no unusual fluctuations and supply is guaranteed. In addition, the price reduction of some commodities according to world prices has also contributed to reducing inflationary pressure such as the average gasoline price in 2023 decreased by 11.02% compared to 2022, gas price decreased by 6.94%. Therefore, in 2023 Vietnam was successful in controlling inflation.

Wage reform and increasing the regional minimum wage from July 2024 will lead to an increase in the prices of household consumer goods and services. Photo: TD.
Wage reform and increasing the regional minimum wage from July 2024 will lead to an increase in the prices of household consumer goods and services. Photo: TD.

Quickly make plans and roadmaps to adjust prices of items

Referring to factors creating inflationary pressure in 2024, Ms. Nguyen Thu Oanh, Director of Price Statistics Department, General Statistics Office said that world input raw material prices are at a high level while Vietnam is a country that imports many raw materials for production, it will affect costs and prices, putting pressure on businesses' production and thereby pushing up the prices of domestic consumer goods. In addition, the rising US dollar increases the cost of importing raw materials, putting pressure on the price level of domestic goods.

In addition, the implementation of adjusting the prices of state-managed services in the direction of correctly and fully calculating the factors and implementation costs into the price of medical services and educational tuition will have an impact on increasing CPI; EVN can continue to increase electricity prices when input materials such as gasoline and coal are at high levels.

At the same time, wage reform and increasing the regional minimum wage from July 2024 will lead to an increase in the prices of household consumption goods and services. Prices of food, beverages, garments, equipment and household appliances often increase as a rule in the last months of the year and during holidays. In addition, natural disasters and epidemics can affect food prices in some localities, which will also increase CPI and recovery support programs and public investment disbursement of the government, tourism services, etc are expected to put pressure on the price level in the near future.

However, besides the factors that can put pressure on inflation, there are also factors that help reduce pressure on the price level such as support for reducing environmental taxes on gasoline and reducing VAT that continue to be implemented in 2024.

In order to achieve the target of controlling inflation in 2024 set by the National Assembly, the Director of the Price Statistics Department recommends that the Government, ministries, branches and localities need to closely monitor price developments and inflation in the world, promptly warn of risks affecting prices and inflation in Vietnam to take appropriate response measures to ensure supply and stabilize domestic prices. Ensuring the smooth supply, circulation, and distribution of goods and services, especially for petroleum and strategic items that are likely to be affected by global supply chain disruption, unpredictable and complicated geopolitical tensions between Russia and Ukraine.

Ms. Nguyen Thu Oanh recommended that ministries, branches, People's Committees of provinces and central cities need to closely monitor price developments of essential goods (food, foodstuffs, pork, gasoline, oil, and gas, etc) to have appropriate operating solutions and proactively prepare goods sources at the end of the year to limit price increases. At the same time, it is necessary to have measures to control and stabilize prices, strictly handle violations, avoid unreasonable price increases, develop and calculate the dosage and timing of price adjustments for all items, state-managed goods and services (electricity, medical services, educational services) to be consistent with the goal of controlling inflation.

In addition, the Government needs to continue to operate monetary policy proactively, flexibly, cautiously, and coordinate closely with fiscal policy and other macroeconomic policies to control inflation according to the set target, soon develop plans and roadmaps to adjust commodity prices to avoid being passive in policy coordination.

By Xuan Thao/ Phuong Linh

Related News

Sustaining growth solutions for coffee exports

Sustaining growth solutions for coffee exports

VCN - The continuous increase in coffee prices has provided a strong boost for coffee exports, aiming for a record of US$5 billion. However, it still requires many comprehensive solutions to enhance quality and value to ensure sustainable development for the coffee industry in the future.
Vietnam-China trade reaches over US$ 27 billion

Vietnam-China trade reaches over US$ 27 billion

VCN – China continues to be the Vietnam's largest trading partner.
Be objective before requesting anti-dumping investigation on imported HRC steel

Be objective before requesting anti-dumping investigation on imported HRC steel

VCN - The steel market is "hot" with two conflicting opinions on the issue of initiating an anti-dumping investigation on hot-rolled coil (HRC) steel products imported from China to Vietnam. But clearly, all decisions need to be based on specific and objective data to create a healthy competitive environment.
Negotiating actively FTAs, increasing benefits for businesses

Negotiating actively FTAs, increasing benefits for businesses

VCN - Facing the improvement of exports in the first quarter, sharing with the press, Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade) said that many solutions will continue to be implemented to achieve the goal export growth 2024.

Latest News

Find opportunities in niche markets to increase exports

Find opportunities in niche markets to increase exports

VCN - New markets and niche markets are the way for exports to reduce dependence on traditional markets. Exploiting opportunities in these markets will open up many new opportunities.
Vietnam transforming into new global manufacturing hub: experts

Vietnam transforming into new global manufacturing hub: experts

Vietnam is transforming into a new global manufacturing hub, offering a diverse range of products that are competitively priced and continuously improving in quality, assessed foreign distributors and importers, who will participate in the Vietnam International Sourcing expo this June.
Vietnam National Brand Week to be held in mid-April

Vietnam National Brand Week to be held in mid-April

The Vietnam National Brand Week 2024 will be held nationwide from April 15-21 to raise public awareness of Vietnam national brand and promote products recognised as national brands to domestic and international communities.
Textile industry in sustainability push to meet stringent requirements

Textile industry in sustainability push to meet stringent requirements

Textile and garment businesses are making a green push with development of eco-friendly products adapted to global fashion trends and by meeting the stringent requirements under free trade agreements the country has signed, according to industry insiders.

More News

Loosening the belt buckle for sustainable development of the maritime industry

Loosening the belt buckle for sustainable development of the maritime industry

VCN - Recently, the growth of maritime and waterway transportation has been impressive, with a double-digit rate of about 10-12% per year. However, despite many advantages, the waterway system has not been efficiently utilized, commensurate with its potential. The Customs News had a discussion with Pham Quoc Long, Vice Chairman of the Vietnam Shipowners' Association, on this issue.
Vietnam ready to ride US investment wave

Vietnam ready to ride US investment wave

Vietnam is on the verge of seeing a massive influx of investments from the US, and stands ready to welcome the wave.
Investing in wages is investing in development

Investing in wages is investing in development

VCN - According to Dr. Bui Sy Loi (photo), senior expert of the Ministry of Labor, War Invalids and Social Affairs, former Deputy Chairman of the National Assembly's Committee on Social Affairs, the National Assembly's adoption of the reform policy salaries, resource decisions and salary reform policies on July 1, 2024 is a suitable time, both historical and topical, contributing to ensuring life, creating peace of mind for staff, civil servants, public employees and workers.
Import and export in the first quarter: clearer and clearer bounce- back trend

Import and export in the first quarter: clearer and clearer bounce- back trend

VCN - As calculated, total import-export turnover of goods in the first quarter of the year reached over 178 billion USD, up 15.5% year on year. Both exports and imports achieved high growth rates, clearly showing a recovery trend.
Measures sought for coffee firms to adapt to EU Deforestation Regulations

Measures sought for coffee firms to adapt to EU Deforestation Regulations

Experts gathered in the Central Highlands province of Gia Lai on April 9 to seek measures to help local coffee businesses to adapt to the EU Deforestation Regulations (EUDR) and promote exports to the EU market in particular and the world in general.
Vietnam’s export to India maintains growth momentum

Vietnam’s export to India maintains growth momentum

Vietnam kept its export growth momentum in the Indian market in 2023 after two-way trade hit a record high of 15 billion USD in 2022, Vietnamese trade counsellor in India Bui Trung Thuong told the Vietnam News Agency.
Ample room remains for Vietnam"s exports to China

Ample room remains for Vietnam"s exports to China

There remains ample room for Vietnam's exports to China and the growth will be directly proportional to the quality improvement of products by domestic enterprises, according to Dau tu (Investment) Newspaper.
Take advantage to increase fruit and vegetable exports to nearby markets

Take advantage to increase fruit and vegetable exports to nearby markets

VCN - With close geographical distance, low cost and transportation time, and preferential tariffs... are great advantages that Vietnam's fruit and vegetable industry needs to take advantage of to increase exports to other Asian markets such as China, ASEAN, Middle East...
Exports of goods to key markets rocket

Exports of goods to key markets rocket

VCN- Vietnam's key export markets and industries are launching impressively in 2024.
Read More

Your care

Latest Most read
Find opportunities in niche markets to increase exports

Find opportunities in niche markets to increase exports

VCN - To support businesses in accessing the market, Vietnamese trade agencies abroad are actively providing information and connecting Vietnamese businesses with potential markets.
Vietnam transforming into new global manufacturing hub: experts

Vietnam transforming into new global manufacturing hub: experts

Vietnam is transforming into a new global manufacturing hub, offering a diverse range of products that are competitively priced and continuously improving in quality, assessed foreign distributors and importers, who will participate in the Vietnam International Sourcing expo this June.
Sustaining growth solutions for coffee exports

Sustaining growth solutions for coffee exports

VCN - The continuous increase in coffee prices has provided a strong boost for coffee exports, aiming for a record of US$5 billion. However, it still requires many comprehensive solutions to enhance quality and value to ensure sustainable development for
Vietnam National Brand Week to be held in mid-April

Vietnam National Brand Week to be held in mid-April

The Vietnam National Brand Week 2024 will be held nationwide from April 15-21 to raise public awareness of Vietnam national brand and promote products recognised as national brands to domestic and international communities.
Textile industry in sustainability push to meet stringent requirements

Textile industry in sustainability push to meet stringent requirements

Textile and garment businesses are making a green push with development of eco-friendly products adapted to global fashion trends and by meeting the stringent requirements under free trade agreements the country has signed, according to industry insiders.
Mobile Version