Coal and power prices would not go up in the first quarter of 2011, saidthe head of the Ministry of Finance (MoF) Price Management Department,Nguyen Tien Thoa.
The ministry had taken thedecision because prices of these two utilities often had a knock-oneffect on other goods and services, which could lead to an unwantedgeneral price rise, said Thoa at a press conference on Friday.
"Price fluctuations often occur at the end of the year owing toincreased demand. Therefore, from now until early next year, MoF willfocus on resolving difficulties in production. We want to balance supplyand demand and to avoid any shortages, essentially in underprivilegedareas."
According to the General Statistics Office,the Consumer Price Index (CPI) is likely to hit 11 percent this year.Thoa said weaknesses of the economy had played a part in the increase.
"Growth depends mainly on increased investment butinvestment remains inefficient and competitiveness is low," said Thoa atthe press conference.
He added that the Ministry of Finance (MoF) had taken numerous steps to help stabilise prices.
"For example, MoF has instructed localities to use local standbybudgets to provide non-interest capital for enterprises that tradereserved commodities; this will allow them to sell items at prices 5-10percent lower than the usual market price," Thoa said.
Thoa added that MoF had informed localities to delay the purchase ofnon-essential items to minimise demand-pull inflation.
"These classic solutions are significant if we want price stabilisation."
MoF's recent inspections in HCM City and several other southernprovinces revealed that these localities had already stockpiled enoughessential goods to meet local needs. Localities had also set up salesand distribution networks to better service underprivileged areas.
Thoa added the MoF had provided financial support to help regionsfacing severe weather to recover short-term vegetable crops and hadurged local farmers not to export pigs, which were essential for the NewYear holiday.
Forecasts predicted further economicrecovery next year, which would lead to the increased demand forproduction inputs, and have an impact on prices.
"Tothat end, MoF will continue reforming the market-oriented pricingmanagement mechanism, and respect enterprise and trader's rights to settheir own prices and forms of competition by replacing Pricing Ordinanceby Pricing Law," said Thoa.
"Next year,implementation of the market price scheme should be incorporated intothe completion of the goods and service logistics system. We should alsostrive to reduce production costs and implement policies which ensureunderprivileged households have access to basic social servicesincluding education, healthcare, and housing."
Ensuring supplies
Deputy Minister of Industry and Trade Ho Thi Kim Thoa discussedmeasures aimed at market stability and ensuring adequate supplies ofessential goods during Tet in meeting with officials from the HCM CityDepartment of Industry and Trade last Thursday.
Department deputy director, Le Anh Dao, said firms had stockpiled 15,800tonnes of rice and sticky rice, almost twice the quantity originallyplanned for. They had also put aside 9,800 tonnes of sugar (233 percentof the plan), 14,500 tonnes of meat, 5,200 tonnes of fruits andvegetables; and 55 million eggs.
At present, the Co.op Mart supermarket chain has stocks valued at 30 percent more than their planned value.
And it isn't just firms that have signed up for a city pricestabilisation programme that are stocking up; other companies arepreparing for the year's biggest festival which falls in early Februarythis time.
German supermarket chain Metro has food stocks worth 1.1 trillion VND (56.4 million USD).
French supermarket Big C also has large stocks and has promised tokeep prices and supply relatively stable for the next two months.
The MoIT has instructed the Department to continue working closelywith firms to keep prices of goods like petrol, cement, and food stableduring Tet.
Besides the eight essential goodstargeted under the programme, authorities should also ensure adequatesupply of cakes, candies, and jams for the Lunar New Year, Thoa said.
He said cities needed to ensure that all markets sell goods covered by the price stabilisation programme.
The Department of Transport should also give rush hour priority to vehicles delivering to supermarkets and shopping malls./.
The ministry had taken thedecision because prices of these two utilities often had a knock-oneffect on other goods and services, which could lead to an unwantedgeneral price rise, said Thoa at a press conference on Friday.
"Price fluctuations often occur at the end of the year owing toincreased demand. Therefore, from now until early next year, MoF willfocus on resolving difficulties in production. We want to balance supplyand demand and to avoid any shortages, essentially in underprivilegedareas."
According to the General Statistics Office,the Consumer Price Index (CPI) is likely to hit 11 percent this year.Thoa said weaknesses of the economy had played a part in the increase.
"Growth depends mainly on increased investment butinvestment remains inefficient and competitiveness is low," said Thoa atthe press conference.
He added that the Ministry of Finance (MoF) had taken numerous steps to help stabilise prices.
"For example, MoF has instructed localities to use local standbybudgets to provide non-interest capital for enterprises that tradereserved commodities; this will allow them to sell items at prices 5-10percent lower than the usual market price," Thoa said.
Thoa added that MoF had informed localities to delay the purchase ofnon-essential items to minimise demand-pull inflation.
"These classic solutions are significant if we want price stabilisation."
MoF's recent inspections in HCM City and several other southernprovinces revealed that these localities had already stockpiled enoughessential goods to meet local needs. Localities had also set up salesand distribution networks to better service underprivileged areas.
Thoa added the MoF had provided financial support to help regionsfacing severe weather to recover short-term vegetable crops and hadurged local farmers not to export pigs, which were essential for the NewYear holiday.
Forecasts predicted further economicrecovery next year, which would lead to the increased demand forproduction inputs, and have an impact on prices.
"Tothat end, MoF will continue reforming the market-oriented pricingmanagement mechanism, and respect enterprise and trader's rights to settheir own prices and forms of competition by replacing Pricing Ordinanceby Pricing Law," said Thoa.
"Next year,implementation of the market price scheme should be incorporated intothe completion of the goods and service logistics system. We should alsostrive to reduce production costs and implement policies which ensureunderprivileged households have access to basic social servicesincluding education, healthcare, and housing."
Ensuring supplies
Deputy Minister of Industry and Trade Ho Thi Kim Thoa discussedmeasures aimed at market stability and ensuring adequate supplies ofessential goods during Tet in meeting with officials from the HCM CityDepartment of Industry and Trade last Thursday.
Department deputy director, Le Anh Dao, said firms had stockpiled 15,800tonnes of rice and sticky rice, almost twice the quantity originallyplanned for. They had also put aside 9,800 tonnes of sugar (233 percentof the plan), 14,500 tonnes of meat, 5,200 tonnes of fruits andvegetables; and 55 million eggs.
At present, the Co.op Mart supermarket chain has stocks valued at 30 percent more than their planned value.
And it isn't just firms that have signed up for a city pricestabilisation programme that are stocking up; other companies arepreparing for the year's biggest festival which falls in early Februarythis time.
German supermarket chain Metro has food stocks worth 1.1 trillion VND (56.4 million USD).
French supermarket Big C also has large stocks and has promised tokeep prices and supply relatively stable for the next two months.
The MoIT has instructed the Department to continue working closelywith firms to keep prices of goods like petrol, cement, and food stableduring Tet.
Besides the eight essential goodstargeted under the programme, authorities should also ensure adequatesupply of cakes, candies, and jams for the Lunar New Year, Thoa said.
He said cities needed to ensure that all markets sell goods covered by the price stabilisation programme.
The Department of Transport should also give rush hour priority to vehicles delivering to supermarkets and shopping malls./.
