Friday,  Apr 19, 2019,21:39 (GMT+7) 0 0
Deputy PM expects inflation of 3.3%-3.9%
The Saigon Times Daily
Friday,  Jan 18, 2019,15:39 (GMT+7)

Deputy PM expects inflation of 3.3%-3.9%

The Saigon Times Daily

Deputy Prime Minister Vuong Dinh Hue at a meeting of the Government's Steering Committee for Price Management - PHOTO: VNA

HCMC - Deputy Prime Minister Vuong Dinh Hue, head of the Government's Steering Committee for Price Management, has told ministries, agencies and local authorities to try to keep inflation this year in the range of 3.3% and 3.9%, news site Vietnamplus reported.

Speaking at a review meeting on January 17 on the committee’s 2018 performance and plans for this year, Deputy PM Hue said the target matches the Government’s Resolution 01/NQ-CP on controlling the consumer price index (CPI) at below 4%. It was set after the Department of Price Management, under the Ministry of Finance; the General Statistics Office (GSO), under the Ministry of Planning and Investment; and the State Bank of Vietnam proposed price management plans for this year.

Core inflation, which is CPI exclusive of fresh food, energy and State-controlled services such as healthcare and education, was expected to be in the range of 1.6% and 1.8%. The Ministry of Finance and the GSO have to prepare the price management plans to reach this target.

Regarding the adjustments to electricity prices this year, the deputy prime minister called for electricity prices to be adjusted in line with the prices of gas for consumption and coal for electricity production.

The adjustment of electricity prices must attract energy investors and reduce costs for production and consumption, Hue remarked, adding that the power sector should restructure its production and apparatus to reduce electricity generation costs.

The Ministry of Transport was assigned to start the nonstop toll collection at tollgates nationwide this year to enhance the transparency of toll collection.

Meanwhile, the Ministry of Industry and Trade will have to create a plan to manage fuel prices for the year on the basis of closely following global fuel prices, using the fuel price stabilization fund and encouraging the use of biofuel.

Further, the Ministry of Health was asked to factor the salaries of medical staff and management costs into the prices of health examination and treatment services. It must coordinate with Vietnam Social Security to hold more tenders to select the suppliers of medicines and medical equipment and must negotiate to reduce the prices of drugs.

At the meeting, Deputy Minister of Industry and Trade Do Thang Hai said that the ministry has asked for the production and distribution of goods for the upcoming Lunar New Year (Tet) holiday to remote areas and major cities with many workers to avoid a price-hike scenario.

Members of the committee agreed that price management and inflation control activities last year were successful, with CPI growth of 3.54%, way below the target of under 4%.

This is the third consecutive year the country has kept inflation below 4%, contributing significantly to the socioeconomic development and gaining the people and enterprises’ trust in the Government’s policies.

This success was due to the ministries and agencies’ price management in line with market principles and global price fluctuations. They had built price control plans for each month and each quarter from the beginning of the year.

In addition, the Government’s direction and the coordination of ministries and agencies helped the steering committee fulfill its tasks.

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