A view of the meeting of the Steering Committee on Price Management. (Photo: VGP)
According to the Ministry of Finance 's report on the results of price management and control in the first quarter of 2024 and the orientation for price management in the remaining months of 2024, the commodity market has been relatively stable since the beginning of the year. On average, the CPI increased by 3.77% in the first quarter compared to the same period in 2023. The retail market is still expected to be on the path to recovery. In the first quarter, total retail sales of goods and consumer service revenue reached over 1,537 trillion VND, an increase of 8.2% compared to the same period last year, with tourism revenue increasing by 46.3%...
Based on the synthesis of information and updated forecasts of price trends for essential commodities, which are the focus of price management and control in 2024, and incorporating assessments from the Ministry of Planning and Investment and the State Bank of Vietnam on factors impacting inflation in 2024, the Ministry of Finance has updated three price management scenarios, forecasting an average CPI increase of approximately 3.64% compared to 2023 (scenario 1); 4.05% (scenario 2); and approximately 4.5% (scenario 3). The Ministry of Finance also proposes price management measures for the second quarter of 2024 and the remaining months of 2024.
Accordingly, price management and control must ensure effective inflation control, continue to support the removal of difficulties for production, business, and people's lives. Continue implementing the roadmap for market pricing of public services and goods managed by the State with appropriate levels and measures; accelerate the improvement of the legal system on pricing, and implement the Law on Prices effective from July 1, 2024.
Speaking at the meeting, Deputy Prime Minister Le Minh Khai requested members to discuss and clarify the causes of obstacles and shortcomings in price management, especially the prices of essential goods and special goods (prices of gold bars, apartment prices), as well as fiscal and monetary policies; closely assess the market situation and supply and demand of goods domestically and internationally to prepare scenarios with proactive, timely, and effective management solutions.
At the meeting, representatives from the State Bank of Vietnam, the Ministry of Planning and Investment, the Ministry of Health, the Ministry of Transport, the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the General Statistics Office, the Ministry of Finance, etc., expressed their agreement with the contents of the Ministry of Finance's report.
Analyzing the trends in the CPI index and the supply and demand of essential goods domestically and internationally, opinions emphasized several issues related to fiscal policy management, monetary policy, exchange rate management, gold prices; the implementation of the Price Law; ensuring market supply and demand; managing the prices of medical examination and treatment services, air and maritime transport fares, prices of petroleum products, crude oil, liquefied natural gas, electricity, agricultural products, food, and construction materials…
The opinions also suggested that ministries and agencies carefully consider the timing of price adjustments for some essential goods and services managed by the state, ensuring they are appropriate and coordinated smoothly with the overall implementation of salary policy reforms from July 1, 2024…
Deputy Prime Minister Le Minh Khai delivers a speech at the meeting. (Photo: VGP)
Concluding the meeting, Deputy Prime Minister Le Minh Khai stated that although price management and control in the first quarter faced many pressures and continued challenges due to rapid, complex, and multifaceted fluctuations from the global and regional context, significant results were still achieved. To stabilize the macroeconomy and control inflation according to the set targets, since the beginning of the year, the Government, the Prime Minister, and the Deputy Prime Minister - Head of the Steering Committee for Price Management have directed ministries, sectors, and localities to decisively implement many solutions such as ensuring the smooth operation of the supply, circulation, and distribution of goods and services, especially strategic items.
The government also focuses on strengthening price management and control during holidays and Tet (Lunar New Year); preparing early plans for managing state-regulated goods and public services according to market mechanisms; proactively, flexibly, promptly, and effectively managing monetary policy; implementing a sound fiscal policy; and closely monitoring supply, demand, and market prices of essential goods to take appropriate management measures.
In the second quarter and the remaining months of 2024, the pressure is immense; therefore, to proactively respond to the challenges in price management, the Deputy Prime Minister requested ministries, sectors, and localities to focus on decisively implementing several key solutions:
First and foremost, it is necessary to closely monitor domestic and international economic developments, and to make detailed and specific forecasts of factors affecting the general price level, especially for essential goods and services, in order to proactively develop detailed scenarios for each industry and sector, ensuring accuracy with reality. This will enable the provision, proposal, and implementation of appropriate, timely, and effective price management solutions. "Each ministry and sector, especially the Ministry of Industry and Trade, the Ministry of Health, and the Ministry of Education and Training, must proactively develop scenarios for managing and regulating the prices of essential goods and services, in line with the overall price management scenario, avoiding a reactive approach," the Deputy Prime Minister emphasized.
Regarding price adjustments for essential goods and services, the Deputy Prime Minister requested ministries and branches to calculate the appropriate timing for implementing the new wage policy, ensuring inflation control according to the set target.
Based on the price management scenario, ministries, sectors, and localities, according to their assigned functions and tasks, are directed to prepare sufficient supplies of essential goods, especially those essential items with a high weighting in the CPI.
Continue implementing the roadmap for adjusting prices of public services according to market principles and goods managed by the State according to market principles. Proactively calculate and prepare pricing options and roadmaps for price adjustments of goods to promptly adjust prices within the scope of authority or report to competent authorities for consideration and decision on the appropriate level and timing of adjustments in accordance with market price developments and levels, ensuring the goal of controlling inflation.
Continue to research, advise, and propose solutions related to taxes and fees to support people and businesses; manage monetary policy (credit, interest rates, exchange rates) appropriately to contribute to controlling inflation and promoting growth,...
Government ministries and agencies are focusing on developing and perfecting mechanisms and policies related to price law to implement and guide the Price Law in a consistent, synchronized, and effective manner, thereby creating a complete legal framework for price management and regulation.
Regarding gold prices, especially gold bars, the Deputy Prime Minister requested the State Bank of Vietnam to strictly implement the directives of the Government and the Prime Minister on gold management; in the short term, it must ensure supply and demand and reasonable prices. At the same time, it must research and propose long-term solutions for gold management, ensuring both state management requirements and meeting the legitimate needs of the people.
The Deputy Prime Minister requested that ministries and agencies continue to strengthen information and communication efforts, ensuring timely, open, transparent, and truthful information on prices and the government's price management work, especially regarding price fluctuations of important materials and essential goods related to production and people's lives. All efforts must be for the common good and the interests of the people, resolutely combating price manipulation and vested interests, limiting the increase in inflationary expectations, and stabilizing consumer and business sentiment.
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