Managing and stabilizing prices after Tet

The Tet market is basically stable.

In a report on market prices and price stabilization measures before and during the Lunar New Year of the Year of the Dragon 2024, the Ministry of Finance stated that, thanks to proactive and effective guidance and management, good preparation of goods for Tet, and especially effective inspection and enforcement of price laws in localities, the supply and demand situation and market prices are basically stable and under control, especially in the context of people tending to reduce consumption this year.

The Ministry of Finance assessed that, in general, market prices during the Tet holiday in various localities fluctuated, but there was no shortage of goods or price spikes.

Forecasting the price situation after Tet, the Ministry of Finance said that according to the annual rule, the first quarter coincides with the time when many year-end festival activities and the Lunar New Year of Giap Thin take place, prices often fluctuate and increase before and after Tet (in January, which is the festival month, prices of goods and services for food, entertainment, and travel often increase).

However, prices of some essential goods tend to increase slightly during the Lunar New Year holiday and then gradually return to normal after the holiday. In some provinces and major cities, many supermarkets and stores have reopened to serve the shopping needs of essential goods, and the supply of goods is no longer disrupted, fully meeting the consumption needs of the people. The domestic supply of consumer goods, food, and groceries remains abundant, meeting the needs of the people, so prices are not expected to fluctuate significantly.

Entering 2024, adhering to inflation control targets and maintaining flexibility in price management is a task and challenge for state management agencies to achieve macroeconomic stability, contributing to supporting and promoting economic development in the context of forecasts indicating continued instability and slow recovery of the global economy, along with increasing geopolitical volatility.

In addition, the Resolution on the Socio -Economic Development Plan for 2024, adopted by the National Assembly in November 2023, continues to prioritize growth while consolidating and maintaining macroeconomic stability, controlling inflation, and ensuring major economic balances. This includes setting GDP growth targets of 6-6.5% and an average consumer price index (CPI) increase of 4.0-4.5%.

Proactively responding to challenges in price management.

Continuing to build on the successes of recent years in price management, with the goal of controlling inflation and stabilizing the macroeconomy, the Ministry of Finance stated that it will proactively coordinate with other ministries and agencies to advise the Prime Minister and the Deputy Prime Minister - Head of the Price Management Steering Committee, and implement, within its authority, a comprehensive set of solutions and measures to proactively respond to challenges in price management.

The Ministry of Finance and other ministries and agencies, according to their functions and duties, will focus on several key solutions and tasks in 2024. These include closely monitoring global economic developments and inflation impacts on Vietnam to develop appropriate response measures; closely monitoring domestic market price fluctuations to advise on suitable, flexible, and timely policies and scenarios for monetary policy adjustments, especially for essential goods and services that significantly impact price levels, particularly during periods of price volatility such as holidays, Tet (Lunar New Year), and wage policy adjustments; and managing monetary policy according to set targets in coordination with fiscal policy to contribute to macroeconomic stability, inflation control, and ensuring the major balances of the economy.

In particular, proactively forecast, calculate, develop, and update inflation scenarios for essential goods according to market mechanisms to ensure inflation control meets the set targets. Continue implementing market mechanisms for the pricing of public services and goods managed by the State, based on careful assessment and calculation of impacts to avoid major disruptions to the overall price level.

For specific commodities, the Ministry of Finance requests that ministries, sectors, and localities be responsible for organizing and closely monitoring the supply and demand and market prices of goods under their management to take appropriate management measures. They should proactively forecast and have plans to ensure a balance between supply and demand, especially during periods of high market demand for essential goods such as gasoline, construction materials, food, pork and other fresh food items, agricultural supplies, transportation services, etc., to prevent shortages and disruptions in supply that could lead to sudden price increases.

Simultaneously, flexibly and effectively utilize price regulation tools and measures as prescribed by price law to control and stabilize the market. Strengthen the effective implementation and supervision of price declaration and price listing measures; publicize price information; organize inspections and audits of compliance with price law, and strictly handle violations of price law.

In particular, focus on building and perfecting the institutional framework for the implementation and guidance of the 2023 Price Law to ensure uniformity, consistency, and effectiveness in its implementation, thereby creating a complete legal framework for price management and regulation; strengthen information and communication efforts to ensure timely and transparent information on prices and price regulation by the Government and the Price Regulation Steering Committee, especially regarding price fluctuations of important materials and essential goods related to production and people's lives, in order to limit the increase in inflation expectations, stabilize consumer and business sentiment, especially from the beginning of the year coinciding with holidays and Tet.

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