Vietnam is likely to complete its target of 6.5 percent in economic growth for 2022, but the goal of keeping the inflation rate under 4 percent is tough, according to Assoc. Dr. To Trung Thanh from the National Economics University (NEU).
Illustrative image (Photo: VNA)
Vietnam is likely to complete its target of 6.5 percent in economic growth for 2022, but the goal of keeping the inflation rate under 4 percent is tough, according to Assoc. Dr. To Trung Thanh from the National Economics University (NEU).The increase in commodities’ prices as well as the hike in power prices due to the Russia-Ukraine conflicts are affecting domestic production cost, causing pressure on inflation in 2022, Thanh said at a national symposium to evaluate the Vietnamese economic performance and outlook for 2022, which was held in Hanoi on April 25.Thanh noted that the 45 percent increase in petrol price will cause a rise of 0.6 percent in the consumer price index (CPI) and about 2 percent in the producer price index (PPI). Since the environmental tax rate was cut from April 1, petrol price has been up by about 41 percent, leading to a 0.5 percent rise in CPI and 2.2 percent in PPI.According to the Vietnam annual economic report 2021, the successful control of the COVID-19 and the economic support package will help Vietnam complete the target of 6.5 percent in economic growth in 2022. However, the major economic development motivation will continue to be foreign trade, with great contributions from processing-manufacturing and export activities.
The 45 percent increase in petrol price will cause a rise of 0.6 percent in the consumer price index and about 2 percent in the producer price index (Photo: VNA)
Amid the difficulties facing the private sector, the public sector is likely to make great contributions to economic growth in the year, it said, adding that the reopening of the economy will help speed up the recovery of service sector, thus promoting economic growth.
The report recommended that the Government should stick to three principles while designing policies, including focusing on economic recovery and sustainable economic development amid COVID-19, ensuring economic balance, and prioritising the business sector to create favourable conditions for its post-pandemic recovery and development.
Regarding policies to support enterprises, the report underlined the necessity to give more practical assistance to the right recipients by narrowing the eligible beneficiaries basing on the level of the pandemic's impacts they suffer.
As for the expansion of fiscal support, the report’s research team proposed that the stronger assistance should be given to the business sector, focusing on dealing with the interruption of supply chain and rise in production cost./.
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