CPI must be kept below 4 pct. this year: PM hinh anh 1Prime Minister Nguyen Xuan Phuc speaks at the meeting (Photo: VNA)

Hanoi (VNA) -
Vietnam’s CPI this year must be controlled and grow by less than 4 percent, and this is one of the tasks to develop the economy during the remaining months of 2020, Prime Minister Nguyen Xuan Phuc said on July 1.

At a meeting of the national steering committee for price management in Hanoi, of which he is the chair, the Ministry of Finance reported that pork prices tended downwards in June due to a rise in live pig imports.

The General Statistics Office said that aside from bringing pork prices down, it is also necessary to set electricity and petrol prices at appropriate levels so as to help keep the CPI within the ceiling set by the National Assembly.

As the rise in the basic wage for cadres, civil servants, public employees, members of the armed forces, and pensioners, initially slated for July 1, was delayed due to COVID-19, an increase to health service prices was also rescheduled, the office noted.

The PM said the early containment of COVID-19 has created the conditions necessary for development, noting that the Government is determined to boost economic development and obtain macro-stability - an important target requiring ministries, sectors, and localities to have high levels of resolve.

The country is still working to concurrently fight the pandemic and promote development, and it will absolutely prevent a second wave of infections, he said.

Pointing out that GDP growth was just 1.81 percent in the first half of 2020 - the slowest first-half pace in a decade - he made four requests for the remaining months of the year to promote economic development.

He demanded that economic growth be as high as possible, noting that the Government targets growth of 4 percent for the year, while social security must be ensured and unemployment minimised.

The third task is to keep the CPI below 4 percent, which he said is critical in stabilising exchange rates, which would subsequently help with investment attraction and job creation.

And the fourth is to ensure balance within the economy, especially as uncertainty is likely to come in the second half, such as storms and floods, while food reserves must be guaranteed in all circumstances.

As inflationary pressure remains substantial, the PM asked for flexibility in governance so as not to affect economic recovery and development. 

The Finance Ministry should work with other ministries and sectors to take appropriate action to keep CPI growth at less than 4 percent, he said, adding that 4 percent is acceptable to help spur growth./.