Keeping inflation rate below 4% feasible: Deputy PM

The growth levels are below the benchmark of 4% set by the National Assembly.

“Stabilising the macro-economy coupled with addressing the increase in the prices of public services, the target of keeping inflation rate under 4% this year is achievable”, Deputy Prime Minister Vuong Dinh Hue, who headed the Government’s Steering Committee on Price Management, affirmed at a meeting on March 27.

Hue ordered ministries and sectors to follow the scenario of the CPI growth rate of 3.55% to take specific measures and solutions.

He affirmed that the Government will accomplish the task of controlling the inflation rate to the set target with support of the experience in management and coordination in steering work over prices of commodities of ministries and sectors.

The State Bank of Vietnam was asked to run a flexible monetary policy, manage credit flow in both volume and quality, continue sterilised intervention measures on foreign exchange as well as put forth equitisation of state-owned enterprises.

The Ministry of Agriculture and Rural Development is requested to keep a close watch on the demand for agricultural products, helping stabilise the market and expand export markets. It should join hands with relevant ministries and branches to build prices of the non-public irrigation products and services.

Meanwhile, the Ministry of Industry and Trade in collaboration with the Ministry of Finance should manage the fuel stabilisation fund in an efficient way and stabilise domestic oil and gas market. They must work to set up the special consumption tax for E5 petrol to encourage the trading of this bio-fuel product. In addition, media works should be given priority to raise public awareness of power savings.

The Ministry of Health should make careful adjustment in the medical services and study to issue a circular on bidding for pharmaceutical products procurement and management of medical supplies.

Evaluation on current tuition fees must be conducted by the Ministry of Education and Training and the Ministry of Labour, Invalids and Social Affairs. In the meantime, the Ministry of Transport must continue to examine all projects and complete negotiations with investors and banks to lower fees at BOT toll stations.

The CPI in the first three months of the year picked up 2.82% against the same time last year. The surge was spurred by the hikes in food prices, education costs and power prices.