The Price Management Department under the Ministry of Finance hasforecast that there still are risks for Vietnam’s inflation to behigh in 2014 due to the impact of policies to remove difficulties forbusiness and production in 2013.
During a December30 conference on the development of Vietnam’s prices and market in2013 and prospects for 2014, the department also pointed to naturaldisasters, floods and animal and plant diseases in 2013 as anotherreason for the forecast.
According to Dr. Vu DinhAnh, in 2014, the price development will be affected by the traditionalmanagement policies as well as slow growth of demand.
On the other hand, prices and market will also be impacted byloosening policies such as the widening of budget deficit to 5.3 percentof GDP and the issuance of bonds worth 170 trillion VND (8 billion USD)for the 2011-2015 period, he said.
In addition,efforts to ease difficulties for enterprises, support the market andspeed up growth may force the currency flow to move faster and intensifythe inflation pressure.
Sharing Anh’s opinion,economist Ngo Tri Long held that major challenges still face thenational economy in 2014 as the global economy is forecast to remaingloomy.
Although the consumer price index has been brought under control, the risk of price hikes still looms, he said.
According to the General Statistics Office, the December CPI increasesby 0.51 percent month-on-month and 6.04 percent year-on-year. The 2013average CPI increase is at 6.6 percent over that of 2012, marking thelowest rise in the recent 10 years, it said.
Meanwhile, Pham Minh Thuy from the Economic-Financial Institute underthe Ministry of Finance, said the price developments in 2013 prove theefficiency and proactiveness of the Government’s interference in themarket.
He also emphasised that the stable prices in2013 can be a good chance for the Government to adjust those of anumber of products in the market mechanism and reach the set target ofcontrolling the inflation at the same time.
However, he added, the adjustment should be carefully considered to avoid market shock and adverse impact on the daily life.-VNA
During a December30 conference on the development of Vietnam’s prices and market in2013 and prospects for 2014, the department also pointed to naturaldisasters, floods and animal and plant diseases in 2013 as anotherreason for the forecast.
According to Dr. Vu DinhAnh, in 2014, the price development will be affected by the traditionalmanagement policies as well as slow growth of demand.
On the other hand, prices and market will also be impacted byloosening policies such as the widening of budget deficit to 5.3 percentof GDP and the issuance of bonds worth 170 trillion VND (8 billion USD)for the 2011-2015 period, he said.
In addition,efforts to ease difficulties for enterprises, support the market andspeed up growth may force the currency flow to move faster and intensifythe inflation pressure.
Sharing Anh’s opinion,economist Ngo Tri Long held that major challenges still face thenational economy in 2014 as the global economy is forecast to remaingloomy.
Although the consumer price index has been brought under control, the risk of price hikes still looms, he said.
According to the General Statistics Office, the December CPI increasesby 0.51 percent month-on-month and 6.04 percent year-on-year. The 2013average CPI increase is at 6.6 percent over that of 2012, marking thelowest rise in the recent 10 years, it said.
Meanwhile, Pham Minh Thuy from the Economic-Financial Institute underthe Ministry of Finance, said the price developments in 2013 prove theefficiency and proactiveness of the Government’s interference in themarket.
He also emphasised that the stable prices in2013 can be a good chance for the Government to adjust those of anumber of products in the market mechanism and reach the set target ofcontrolling the inflation at the same time.
However, he added, the adjustment should be carefully considered to avoid market shock and adverse impact on the daily life.-VNA
