Deputy Prime Minister Vuong Dinh Hue addresses the meeting (Photo: VNA)Hanoi(VNA) – Despite complicated changes in the world situation, Vietnam has shownstrong performance in stabilizing prices and reining in inflation, keeping theaverage at only 3.57 percent in the first nine months over 2017.
This was affirmed at ameeting of the Steering Committee on Price Management in Hanoi on September 28to evaluate its performance in the period and sketch out scenario for the restof the year, which was presided over by Deputy Prime Minister Vuong Dinh Hue,head of the committee.
A report by thecommittee showed that amidst complicated international developments such as theUS-China trade war, US-Iran tension, Turkey crisis and hike in petrol pricesthat have influenced world inflation as well as domestic prices, ministries andlocalities have actively coordinated in managing the prices for a suitableindex, while proposing responding measures for price stability.
The report said that coreinflation rose 0.14 percent month on month in September and 1.41 percent in thefirst nine months of 2018, lower than the target of 1.6-1.8 percent set earlier.
It commented that theresults were positive in the context of the global trade tension that affectedmany big markets of Vietnam and broke a number of supply chains.
According to Deputy PMHue, the developments in inflation of September and the first nine months ofthis year matched the prediction earlier this year.
He noted thatministries, agencies and localities have taken many measures to control prices,reduce cost for enterprises as well as the whole economy.
Consumer price indexin September – the starting month of a new academic year with high demand forteaching and studying tools as well as tuition pressure, along with surge inworld oil price – rose only 0.59 percent over the previous month, lower thanthe predicted increase of 0.6-0.7 percent.
The Deputy PM hailedthe efforts of the Ministry of Industry and Trade and other ministries inmanaging petrol prices, holding that the results contributed to stabilizing themacro-economy and ensuring a favourable environment for investment and businessas well as growth that reached 6.98 percent in the nine months.
Inflation managementis facing many challenges, but it is still under the Government’s control, Huestated.
He also pointed to theneed to keep a close watch at the prices of necessities such as food,foodstuff, oil and gas, especially in year-end and stormy season.
The State Bank ofVietnam should apply flexible monetary policies for the goal of 1.5-1.6 percentof core inflation, he said, requesting the Ministries of Industry and Trade andFinance to closely follow the developments of the global fuel prices to avoidtheir impact on CPI.
The Ministry ofAgriculture and Rural Development should harmonise demand and supply of foodand foodstuff, especially pork, and coordinate with the Ministry of Industryand Trade to stabilise food prices, while the Ministries of Industry and Tradeand Construction should regulate the production of construction material toavoid shortage, Hue asked.
He also requested theMinistry of Finance and the SBV to coordinate in adjusting fiscal and monetarypolicies, regulating deposits in the SBV and the State Treasury, thusstrengthening circulation of money and ease pressure on inflation. Relevantagencies should submit price management scenario for 2019 with a target ofkeeping inflation at about 4 percent, the official said.-VNA
VNA
