The Government's inflation target remains within reach despite mounting headwinds. Several forecasts suggest inflation can stay below 4.5% this year if international oil prices continue to retreat. Extending domestic fuel tax incentives through year-end, along with stable electricity prices, healthcare fees and exchange rates, would offer additional relief.
Prime Minister Pham Minh Chinh has demanded ministries, sectors, and localities resolutely not step back in the face of difficulties while chairing the Government’s regular meeting for August in Hanoi on September 9.
Prime Minister Pham Minh Chinh on July 15 ordered prioritising capital for production and trade to fuel growth in tandem with stabilising macro-economy, controlling inflation and Government and public debts while ensuring major balances of the economy.
Vietnam requires a timely response to maintain its export market in the face of fluctuations occurring in the global economy, high inflation hitting many countries, and the increase in trade protectionism from importing countries leading to many difficulties for the nation's production and exports.
The Ministry of Finance has developed several scenarios to gauge Vietnamese inflation this year, with the ultimate figure likely to be kept at between 3.9% and 4.8%.
Prime Minister Pham Minh Chinh has directed that maintaining macro-economic stability, controlling inflation, propelling growth and ensuring major balances of the economy continue to be priorities in February and coming months.
Prime Minister Pham Minh Chinh chaired a conference in Hanoi on September 12 to continue seeking measures for keeping macroeconomic stability, controlling inflation, boosting growth, and ensuring major balances of the economy in the current context.
It is essential to improve the capacity for analysis and forecasting in a bid to control inflation, ensure macro-economic stabilization and major balances of the economy as a mean of boosting economic recovery and sustainable development.
Along with maintaining the nation’s GDP growth forecast at 6.7% for this year and 7% in 2023, Standard Chartered projects that this year's inflation will exceed 4%, a figure higher than the target set by the National Assembly.
Vietnam remains self-sufficient in terms of food, which accounts for 40% of the basket of goods, meaning inflation pressure is not as high as faced by other countries, according to Finance Minister Ho Duc Phoc.
The goal of maintaining inflation at 4% this year will be threatened unless viable solutions are introduced in a bid to rein in rapidly-increasing petrol prices, according to economic experts.
The Vietnamese economy is anticipated to enjoy positive growth of roughly 6% this year, while inflation is forecast to be at between 4% and 4.5%, according to financial experts.
The Government has highlighted the need to strengthen macro-economic foundation and control inflation in a resolution recent released at its regular monthly meeting.
It will be difficult to curb inflation if unreasonable measures are used to reach a GDP growth rate of 6.7% and low inflation rate of 4% in 2017.