To ensure that the wage increase truly has a positive impact on people's lives, the Ministry of Finance has also developed scenarios to control inflation and avoid unreasonable price increases.
Prime Minister Pham Minh Chinh has just signed and issued a directive on strengthening measures to manage and regulate prices. In it, the Prime Minister requested that ministries, sectors, and localities continue to closely monitor market developments, promptly implement solutions to ensure a balance between domestic supply and demand, stabilize prices, and prevent shortages, hoarding, speculation, and unreasonable price increases.
In the latest meeting of the Price Management Steering Committee, both the General Statistics Office and the Ministry of Finance predicted that the average CPI for the whole year would fluctuate between 3.7% and 4.5%, and that in the first half of the year, price developments for essential goods would basically remain within the projected scenario.
First, fuel prices tended to increase during the first four months of the year, then decreased again from the end of April until now, and have returned to levels almost equivalent to those at the beginning of the year. Based on this, transportation service prices, such as airfares, have also cooled down compared to the peak period. According to the Ministry of Transport , airfares in May ranged from 30-70% of the maximum regulated price. Efforts have been made to create more price ranges to serve the upcoming summer tourist season.
The Consumer Price Index (CPI) in April and May increased only slightly by 0.05-0.07% compared to the previous month, mainly due to factors such as hot weather affecting the local supply of vegetables, increased demand for electricity and water, purchases of electrical appliances, and increased demand for beverages, which pushed prices of these product groups up slightly. In addition, the long holiday period of April 30th - May 1st also increased demand for dining out and tourism, but the price index of these groups only increased slightly.
According to estimates by the Ministry of Finance, in the last seven months of the year, the average monthly CPI still has room to increase by about 0.39 - 0.6% to ensure that average inflation in 2024 is kept within the target level.
Proactively implement measures to control the prices of essential goods.
Controlling the prices of essential goods requires the involvement of not only ministries and agencies, but also localities nationwide, especially those that are economic powerhouses. This is evident in Ho Chi Minh City, one of the country's leading consumer markets.
At many traditional markets in Ho Chi Minh City, dried goods, vegetables, and fresh meat and fish are publicly priced, making it easy for consumers to keep track.
"It's very reassuring when items are priced clearly. There's no fear of being overcharged. I can plan to buy more items," shared Ms. Tran Thi Tu Trinh from Ho Chi Minh City.
Currently, commodity prices are fluctuating slightly in some product groups, mainly due to external factors such as exchange rates, input material costs, and logistics costs. Retailers say their business strategy during this period is to purchase goods directly from sources and in large quantities to secure better prices.
Mr. Nguyen Duc Toan, Director of Purchasing at MM Mega Market Vietnam, stated: "Currently, we have signed contracts with approximately 1,400 suppliers, including 200 strategic suppliers. We have a price stabilization program for over 1,000 essential products, directly targeting vegetables, fruits, fish, and meat."
"Price stability is good, attracting people to buy at good prices and with good quality. I buy a lot, enough for the whole week, and then I'll buy again the following week," said Ms. Nguyen Thi Phuong Loan from Ho Chi Minh City.
The market stabilization program is the most effective tool for controlling prices in Ho Chi Minh City. At the beginning of the second quarter, 3 out of 10 product groups proposed price reductions: poultry meat, poultry eggs, and processed foods, by 2-7%. 6 out of 10 product groups maintained their prices. This ensures prices are 5-10% lower than market prices.
Poultry egg businesses say they have proactively improved production to ensure prices for the price stabilization program.
Mr. Truong Chi Cuong, Deputy General Director of Vinh Thanh Dat Food Company, said: "The company has invested in two new production lines with higher automation, reducing the rate of egg breakage and damage. This also reduces indirect costs such as advertising and marketing."
"Food processing businesses all prepare raw materials in advance for production, with a 3-6 month lead time. We don't drastically increase prices but maintain current selling prices to increase purchasing power in the market and create various promotional programs," said Ms. Ly Kim Chi, President of the Ho Chi Minh City Food and Beverage Association.
The Ho Chi Minh City Food and Beverage Association also stated that lending interest rates for food and beverage businesses have recently been reduced by 1-2%, coupled with a series of government policies such as debt deferral, tax payment extensions, and a 2% VAT reduction, all of which are tools that help to control prices more proactively and conveniently.
Regarding the government's proposal to increase salaries by 30% for civil servants and public employees, and 15% for retired workers, the Ministry of Finance stated that adjusting the base salary annually is an effort by the government to ensure a decent standard of living for those receiving salaries. To ensure the salary increase has a truly positive impact on people's lives, the Ministry of Finance has also developed scenarios to curb inflation and avoid unreasonable price increases. The Ministry of Finance leadership also emphasized that, based on past statistics, the increase in the base salary on July 1st will not have a significant impact on the price of goods and services.
Mr. Nguyen Duc Chi, Deputy Minister of Finance, stated: "Market inspections and audits are being conducted in accordance with the newly enacted Price Law, aiming to combat speculation, price manipulation, and market disruption. I believe that the market, the people, businesses, and society are adapting to the wage increase, and there is not much psychological impact from the wage increase or its effect on inflation."
Price management closely follows global developments.
However, controlling average inflation within the target of 4-4.5% set by the National Assembly is a challenging task, especially given the unpredictable fluctuations in international oil prices and maritime freight rates. The key is that the domestic economy is showing positive signs of recovery.
Some members of the National Assembly have suggested that the government has struck a flexible balance between growth and inflation, thereby continuing to pursue the goal of supporting economic recovery.
Mr. Hoang Van Cuong, from the National Assembly's Finance and Budget Committee, stated: "We don't need to force prices down too much; thanks to that, we've seen a very good economic recovery in recent times, without affecting people's lives. This shows that the Government has sufficient potential to control commodity prices in the market, including very sensitive goods."
At a recent six-month review meeting, representatives from the Ministry of Finance also proposed a set of solutions to continue tightly controlling inflation fluctuations from now until the end of the year.
Ms. Le Thi Tuyet Nhung, Deputy Director of the Price Management Department, Ministry of Finance, emphasized: "Firstly, closely monitor the supply and demand of essential goods in the market to implement appropriate management measures. Secondly, ensure the supply and circulation of goods. Thirdly, focus on price declaration and listing. Prepare early plans for managing the prices of state-regulated goods and public services according to market-based roadmaps. Fourthly, manage monetary policy flexibly according to set objectives, in a synchronized and harmonious manner with fiscal policy."
At a recent meeting of the Steering Committee for Price Management, Deputy Prime Minister Le Minh Khai also requested that attention be paid to building and perfecting the institutional framework for the implementation and guidance of the 2023 Price Law, ensuring uniformity, consistency, and effectiveness, and creating a complete legal framework for price management and control.
In the recently issued directive, the Prime Minister also assigned numerous tasks to ministries and agencies regarding the management and regulation of prices for specific commodities such as gasoline, electricity, medical services, food, construction materials, air transport, and education services. He also requested that relevant agencies strictly handle cases of spreading false information that causes panic among consumers and destabilizes the market. Ministries and agencies are responsible for reporting to the Prime Minister on price management scenarios and their impact on inflation before June 30th.
According to VTV
Source: https://doanhnghiepvn.vn/kinh-te/khong-de-tang-gia-bat-hop-ly-khi-tang-luong/20240625092238614
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