Vietnam inflation still under control: economists

Economists have forecast Vietnam’s inflation will be kept at around 3.3-3.8% this year, similar to the National Assembly-set target of below 4%, adding that the pressure for 2023, however, remains huge and requiré appropriate response solutions.

Illustrative image (Photo: VNA)

Hanoi (VNA) – Economists have forecast Vietnam’s inflation will be kept at around 3.3-3.8% this year, similar to the National Assembly-set targetof below 4%, adding that the pressure for 2023, however, remains huge and requires appropriate response solutions.

According to Deputy Director of the Vietnam Institute forEconomic and Policy Research (VEPR) Nguyen Quoc Viet, inflation in manycountries over the world posted a record high in the first months of 2022. Global inflation is projected from 7.25-9.4% this year and 4-6.5% next year.

The inflation pressure has forced central banks to tightentheir monetary policies, which poses a risk of increasing economic recession.

In Vietnam, to control inflation under 4%, the Governmentand relevant agencies have taken flexible measures, from controlling marketliquidity to flexibly combining fiscal policies and exempting or reducingtaxes and fees of essential and strategic commodities.

Thanks to these measures, the country’s inflation in thefirst eight months of 2022 was 2.58% year-on-year, higher than the 1.67% ofthe same period last year but lower than the average of the similar period ofthe 2018-2020 period.

Economist Le Xuan Nghia pointed to five solutions that needto be carried out in the remaining months of this year, namely persisting measures to stabilise macro-economy, prices and curb inflation;maintaining those to boost sustainable growth; providing support in terms ofcapital and market access for people and businesses; solving shortcomings ofthe business environment and labour shortage problems; and better forecast andpolicy assessment works./.

VNA