NDO - The Ministry of Finance has requested ministries, sectors, localities, associations and large enterprises, to implement price management after the Lunar New Year.

The Finance Ministry asked related agencies to actively monitor supply, demand and the market prices of important and essential commodities after Tet, especially services with high demand, such as transportation and tourism services, specifically at entertainment and sightseeing locations, including festivals, as well as items that continue to increase, such as petrol and construction materials.

Agencies should have synchronous and flexible management solutions, in close combination with monetary, fiscal and other policy tools, to contribute to maintaining macroeconomic stability, controlling inflation, and keeping the market stable, towards controlling inflation, throughout the first quarter and the entirety of 2022.

The Finance Ministry’s move is considered timely, as raw materials and fuels such as gasoline, liquefied petroleum gas, and others, continue to increase sharply on the world market.

Previously, it was forecast that there would be a number of factors that put pressure on the price level after Tet, including support policies and economic stimulus packages. During the recent price operation period on February 11, the price of petrol increased by nearly 1,000 VND per litre, putting great pressure on the price level in general and the price of commodities using petrol as an input for production.

The prices of many raw materials and supplies are also under great pressure from the increasing prices around the world. A number of favourable factors helped reduce pressure in operating and controlling inflation, such as the abundant supply of consumer goods and food, the reduction of VAT from 10% to 8% on many goods and services and the restriction of spring festival activities in many localities.

Experience and consistency in the policy of stabilising the macro-economy and controlling inflation of the National Assembly and the Government, have also helped strengthen the confidence of businesses and people, in a stable macroeconomic environment.

The Prime Minister has just issued an urgent dispatch, directing agencies, including the Ministry of Finance, to quickly arrange adequate State budgets for expenditure tasks,while promptly handling payment problems and publicising the disbursement rate of public investment.

In order to strictly implement the Prime Minister's direction, economic experts said that management agencies need to closely monitor world economic developments, inflation, and price movements, of fuel and strategic materials, to have proactive solutions in managing domestic production and balancing supply and demand, to control inflation from the first months of 2022. Price management throughout this year, still needs to be conducted proactively and flexibly, right from the beginning.

To control the growth rate of the average consumer price index, for the whole year at about 4%, according to the target set by the National Assembly, relevant sectors need to continue to remove difficulties for production and businesses, ensure abundant supply and gradually increase income for people and workers.

The management agencies should implement a market price roadmap for public services and goods managed by the State, while promptly completing the legal system on prices.

At the same time, it is necessary to proactively remove obstacles hindering production and business activities, simplify administrative procedures, including handling online platforms, encourage innovation, and promote digital transformation and digital economy.