Vietnam gears up for potential inflation impact in 2025

Deputy Prime Minister Ho Duc Phoc, Director of the Price Management Steering Committee, chaired a meeting. Photo: VGP

On February 6, 2025, Deputy Prime Minister Ho Duc Phoc, Director of the Price Management Steering Committee, chaired a meeting to assess the results of price management and administration in 2024 and set orientations for 2025.

According to a report by the Ministry of Finance at the meeting, the average Consumer Price Index (CPI) in 2024 increased by 3.63% compared to 2023, within the inflation control target set by the National Assembly and the Government.

In 2025, the CPI in January 2025 increased by 0.98% compared to December 2024, mainly due to the impact of adjusted healthcare service prices in localities, and increased prices of food and transportation services as people's demand for shopping and travel increased during the Lunar New Year (Tet) of 2025.

Compared to the same period last year, the CPI in January 2025 increased by 3.63%.

The Ministry of Finance report also forecasts several factors that will put pressure on the price level in 2025.

Specifically, prices of goods in the fuel and energy group in the world market continue to be complex, increasing and decreasing alternately due to the impact of geopolitical factors.

Along with the price of some construction materials with limited supply, prices may increase due to the demand for construction of key projects.

Moreover, prices of some food, beverage, and garment items may increase locally at certain times of holidays or due to the impact of storms, floods, and unfavorable weather...

The prices of some goods managed by the State, and the implementation of service price adjustments in the direction of calculating correctly and fully the factors and costs will impact and increase the CPI...

Regarding proposed price management measures, according to the Ministry of Finance, from now until the end of 2025, price management and administration should continue to adhere to the inflation control target set by the National Assembly, the Government, and the Prime Minister.

In the context of resources being promoted to boost economic growth at the highest level, while continuing to support the removal of difficulties for production, business and people's lives, the Ministry of Finance believes that it is necessary to continue implementing the roadmap for market prices of public services and goods managed by the state with appropriate levels and dosages according to the movement of the consumer price index.

Deputy Prime Minister Ho Duc Phoc emphasized the spirit of strict management and operation according to the scenario. Photo: VGP

Concluding the meeting, Deputy Prime Minister Ho Duc Phoc highly appreciated the general report of the Ministry of Finance as well as the opinions of ministries and branches, and requested the Ministry of Finance to absorb and complete the report of the Steering Committee to have a basis for administration in the coming time.

Deputy Prime Minister Ho Duc Phoc emphasized that the GDP growth target in 2025 must reach at least 8%, and the amount of money to be supplied to the economy will be much larger than in 2024.

Growth momentum is being unleashed, so this will affect the price index, especially the consumer price.

Among the 3 inflation scenarios in 2025 proposed by the Ministry of Finance, the Deputy Prime Minister suggested choosing the second scenario (the average CPI in 2025 will increase by about 4.15% compared to 2024) to drastically implement solutions.

In that spirit, the Deputy Prime Minister requested ministries and branches, based on their assigned functions and tasks, to develop price management scenarios for managed commodities by quarter, and send them to the Ministry of Finance and the General Statistics Office for synthesis and advice to the Government on the most feasible management measures.

At the same time, the Deputy Prime Minister requested the Ministry of Finance to advise the Prime Minister to issue a directive requesting the immediate and serious implementation of the Price Law to maintain a healthy competitive environment, avoiding cases of price manipulation, appropriation, and price increases.

The Deputy Prime Minister also requested to closely monitor the movement of the domestic and world markets, especially the development of supply and demand for strategic and essential goods for production, business and people's lives.

Through this, to develop scenarios and solutions in a flexible way to be ready to respond to fluctuations.

On that basis, it is necessary to manage tightly, proactively, and diversify supply sources, without disrupting supply chains, especially for gasoline, oil, and electricity.

For goods managed by the State, ministries and branches, according to their assigned functions and tasks, proactively develop price management measures according to the market roadmap with appropriate levels and times.

The Deputy Prime Minister emphasized the spirit of strict management and administration in accordance with the scenario.

At the same time, continue to promote information and propaganda work, ensuring timely and transparent information on prices, especially the development of prices of important materials and essential goods related to people's lives.