Vietnam should stay proactive to cope with inflationary pressures
Although the average consumer price index (CPI) in 2023 increased by only 3.25% year-on-year and the January figure went up 0.31% over the previous month, meaning that inflation is under control, it is necessary for Vietnam to be vigilant against inflation, according to the Investment Review.
The world economic environment also requires the country to be ready and take proactive measures to deal with inflation.
In fact, inflation remains at a low level and even though the Lunar New Year (Tet) festival is approaching, increasing consumer demand could impact the CPI in February, but at a reasonable level.
Goods are sufficient to meet the demand during Tet. The Government, market management agencies, and localities have also prepared measures to ensure price stability during Tet.
However, according to forecasts, inflation will be unpredictable this year due to various elements such as hiking prices of electricity, medical or educational services, as well as the increase in basic salaries from July.
At its latest meeting, the Price Management Department under the Ministry of Finance proposed three scenarios for inflation with average CPI increases of 3.52%, 4.03% and 4.5%. In all the scenarios, inflation remains within the target set by the National Assembly.
Recent forecasts from international institutions such as the Asian Development Bank, World Bank and HSBC regarding Vietnam's 2024 inflation are quite positive.
However, inflationary pressures remain, particularly when it is difficult to predict market and global economic developments. Therefore, it is important to adopt a proactive and flexible approach, ensuring good control of inflation in line with the objectives set by the National Assembly, including closely monitoring the situation to quickly take appropriate management measures.
