The Ministry of Finance will actively, seriously and flexibly conduct price management and inflation control in accordance with the country’s situation.

The Ministry of Finance will strictly monitor supply, demand and prices
of essential commodities. Photo: Internet

Ministry of Finance gives timely advice and management

CPI in August 2021 rose by 0.25% from July. Average CPI in the first eight months of 2021 grew by 1.79% year-on-year, the lowest growth since 2016. Average core inflation in the first eight months of 2021 rose by 0.9% year-on-year, according to the General Statistical Office.

In August many cities and provinces applied Directive 16 of the Prime Minister which restricts people from travel, so the demand for food storage and consumption surged. In addition, the supply was limited, the delivery cost was expensive due to social distancing measures by localities, so transport enterprises faced difficulties in travel. Thus, the average price index of food in August 2021 rose 0.97% from the last month.

In cities and provinces implementing social distancing according to Directive 16, the price index was higher than the average, such as Hanoi 3.27%, Ho Chi Minh City 2.72%, Can Tho 6.07%, Binh Duong up 4.01%, and Vinh Long up 2.79%.

Amid the turbulence of the pandemic, especially in the southern provinces, the Government has requested ministries, agencies and local governments to ensure timely and adequate supply of food and essential commodities to people. Therefore, the Ministry of Finance promptly gave advice and sent documents to ministries, agencies and local governments on strengthening price management and administration, to stabilize market prices.

Accordingly, prices of essential commodities such as gasoline, gas, electricity, clean water, agricultural products, agricultural materials, prices of transportation services, educational services and textbooks, drug prices, medical supplies, virus prevention materials have been strictly and flexibly managed and controlled by ministries and local governments. Thus price of gasoline did not see a surge due to the hike in global fuel prices.

The Ministry of Finance said in the past eight months, the Ministry of Industry and Trade worked with the Ministry of Finance to issue 16 documents on fuel management.

Notably, the Ministry of Finance has repeatedly requested the Ministry of Health to announce market prices of medical equipment, supplies, and drugs, biological products for SARS-CoV-2 testing and other anti-pandemic goods and services so that local governments can refer to the announcement for procurement.

The Ministry of Finance also sent an official dispatch to report to the Prime Minister, on assigning the Ministry of Health to regularly update and publicize information on prices of drugs, equipment, medical supplies, and biological products for SARS-CoV-2 testing, and prices of goods and services for pandemic prevention.

Therefore, the Ministry of Health has guided and urged suppliers to publicize prices of medical equipment.

The Ministry of Finance also proposed the Ministry of Health to implement a number of contents as a basis for price negotiation of chemicals, supplies and equipment for the prevention and control of the pandemic if suppliers fails to make price announcements.

Take the initiative to remove difficulties and regulate the source of goods

The risk of high inflation in the world will have an indirect impact on Vietnam when the prices of many raw materials, fuels and materials continue to rise. This will affect the country’s inflation, according to the Ministry of Finance.

Director of the Department of Price Management Nguyen Anh Tuan said the pressure from implementing the market price roadmap for some public services in the period under Decree 60/2021/ of the Government on the autonomy mechanism for public service delivery units and completing the pricing roadmap in 2021 will affect CPI by about 0.13%.

To control inflation according to the target assigned by the National Assembly, Tuan said that over the rest of the year, price management and inflation control should be done carefully, flexibly and proactively.

Based on the assessment of the pandemic in the country and the price movements of commodities in the world and in the country, the Ministry of Finance proposes solutions: closely monitoring supply and demand, market prices of important and essential commodities to take appropriate management measures; proactively removing difficulties and preparing a plan to regulate the source of goods to increase the supply to pandemic-hit areas requiring isolation or social distancing to ensure sufficient supply of essential goods for the people.

Furthermore, it is necessary to strengthen the inspection and control of the market, management of price declaration and price listing in accordance with the law; evaluate and update the price management scenario for the second half of the year to report to the Government, the Prime Minister, the Deputy Prime Minister-Head of the Price Management Steering Committee, especially price management for State-managed goods and public services which are in the market roadmap to ensure the target of inflation control and meet the pandemic movements.

In addition, it is necessary to continue promoting information and dissemination work, to inform prices and price management by the Government and the Steering Committee for Price Management, especially prices of important materials, essential items related to production and people's life to stabilize consumer sentiment and control expected inflation.