According to Mr Xuan, the Government’s measures to curb runaway inflation have begun to pay off, with the consumer price index increasing by only 2.14 percent in June compared to the record high of 3.95 percent in May.

Mr Xuan told the media in Hanoi on June 27 that the Government’s tight monetary policy has proved effective, with total modes of payments falling dramatically. In addition, Vietnam has announced a bumper winter-spring rice crop this year, refuting rumours that the country had run short of food for local consumption. As a result, food prices have fallen gradually, and the Government has also agreed to increase the export rice volume to 4.5 million tonnes this year instead of 3.5 million tonnes announced earlier.

Many capital construction projects have been halted, causing building material prices to fall.