The State Bank of Vietnam could increase credit growth limits for credit institutions this year or even launch stronger monetary policies to aid the country’s post-pandemic growth, Governor Le Minh Hung has said.
With huge inflation pressure on the way in the remaining months of this year, a close watch must be kept on the prices of key products like oil and pork to hit the goal of keeping inflation below 4%, experts have said.
The threshold would now be raised from VND9 million (US$389) per month to VND11 million (US$475).
Total revenue of retail trade and services reached more than VND1.91 quadrillion (US$82.36 billion) in the first five months of this year, down 4% year-on-year, a report from the General Statistics Office (GSO) showed.
The Government will take more drastic actions to contain the spread of the COVID-19 pandemic in the next one month, Prime Minister Nguyen Xuan Phuc said while concluding the government's regular meeting for March on April 1.
Managing prices and inflation would be more complex and difficult this year, experts have said.
Business conditions improved in the Vietnamese manufacturing sector during December as new orders rose to a four-month high, according to a report released by IHS Markit on January 2.
The Vietnam Manufacturing Purchasing Managers’ Index registered 51.0 in November, up from the neutral reading of 50.0 in October, according to the latest IHS Markit report released in early December.
Deputy Prime Minister Vuong Dinh Hue stated that this year’s inflation is controllable, at 3.3 – 3.9 percent, while chairing a November 18 meeting on the recent surge in prices of pork, an essential foodstuff.
The Government has asked ministries, sectors and agencies to give advice to the Government and the Prime Minister on measures to deal with overlapping, incoherent and ambiguous legal regulations, mechanisms and policies.
After recording its slowest pace in more than three year last month, Vietnam’s inflation is forecast to hit only 2.7 percent in 2019 after standing at 3.5 percent last year.
The World Bank has forecast Thailand’s economic growth to slightly slow down and rise 3.8% this year while the general economy of East Asia and the Pacific is expected to slow down and rise 6% this year and next year.
VOV.VN - The upward inflation rate seen during the year’s first quarter was driven by hikes in energy prices, the Vietnam Institute for Economic and Policy Research has claimed.
The Asian Development Bank (ADB) has retained its forecast for Vietnam’s economic growth at 6.9% in 2018 and 6.8% in 2019 in its new report.
Deputy Prime Minister Vuong Dinh Hue has asked that electricity prices, which affect many sectors, be adjusted at appropriate points of time next year so as to keep inflation in 2019 at under 4%.
Although full-year inflation will probably be contained at less than 4%, the average consumer price index (CPI) in the first nine months of 2018 was already 3.57%, putting the efforts to curb inflation in the remainder of the year under even greater pressure.
Authorities need to closely control the rapid increase in Vietnam’s credit-to-GDP gap so as not to cause high inflation as in the past, experts have warned.
Increases in environmental protection taxes on petroleum from the beginning of next year would weigh heavily on inflation, especially as fuel prices rise worldwide, according to the Vietnam Institute For Economic and Policy Research (VEPR).
Positive signs have been seen in the three areas of agriculture, industry, and service so far this year, while inflation was also controlled to under 4% as targeted.
Despite complicated changes in the world situation, Vietnam has shown strong performance in stabilizing prices and reining in inflation, keeping the average at only 3.57 percent in the first nine months over 2017.