Stabilizing market prices at the end of the year and during the 2023 Lunar New Year

The Government Office has just issued Notice No. 333/TB-VPCP dated October 25, 2022, concluding the conclusion of Deputy Prime Minister Le Minh Khai - Head of the Price Management Steering Committee at the meeting of the Price Management Steering Committee on price management and administration in the first 9 months of 2022 and orientations for the last months of 2022.

The announcement stated: In the first 9 months of the year and the first half of October 2022, the direction and management of prices were under a lot of pressure in controlling inflation, but with the strong direction of the Government, the Prime Minister, the Deputy Prime Minister - Head of the Steering Committee and the active implementation of ministries, branches and localities, the situation was controlled and appropriate solutions were promptly proposed and inflation was basically controlled according to the set target. CPI in September 2022 increased by 0.4% compared to the previous month. On average, in the first 9 months of 2022, CPI increased by 2.73% compared to the same period in 2022.

In the context of high inflation in countries in the region and many countries in the world, the results achieved from price management and inflation control in the country since the beginning of the year have been achieved thanks to the great efforts of ministries, branches and localities as well as the active participation of businesses and the support of the people for the State's policies and solutions for price management and operation.

Market prices tend to increase at the end of the year. Photo: Viet Phuong

Strengthening price management and operation

However, in the remaining months of 2022, the world's socio-economic and geopolitical situation remains very complicated, inflation in some countries continues to increase, the supply-demand situation and prices of strategic goods, especially gasoline and oil, are expected to have many unpredictable and complicated fluctuations. In the country, some tax support policies will expire at the end of the year, the disbursement of public investment capital will be strengthened, the fourth quarter is the peak time to prepare for production, prepare reserves to serve the needs of holidays and Tet at the end of the year, the impact of natural disasters, epidemics, etc. Therefore, it is necessary to continue to strengthen price management and operation, especially for localities.

The Deputy Prime Minister requested ministries, branches and localities to base on inflation room to proactively prepare good plans for price management of State-priced goods, carefully assess the impact to make adjustments according to their authority or submit to competent authorities for consideration and decision on the level of adjustment in accordance with market developments and price levels in accordance with regulations.

Up to now, if there are no unusual fluctuations, the work of controlling inflation according to the target assigned by the National Assembly and the Government at around 4% is feasible. However, the work of managing and operating prices needs to continue to be implemented proactively and flexibly to ensure the control of average inflation for the whole year of 2022 according to the target assigned by the Government and the National Assembly as well as creating a favorable foundation for controlling inflation in 2023.

Leaders of the Department of Industry and Trade check the supply and price of goods at supermarkets in Vinh city. Photo: Viet Phuong

Ministries, branches and localities closely follow the direction of the Government, the direction of the Prime Minister in Official Dispatch No. 679/CD-TTg dated July 31, 2022 on strengthening price management and operation measures, the direction of Deputy Prime Minister Le Minh Khai - Head of the Steering Committee for Price Management on specific solutions for price management in 2022 in Documents No. 882/VPCP-KTTH dated February 10, 2022, Notice No. 65/TB-VPCP dated March 2, 2022, Notice No. 81/TB-VPCP dated March 24, 2022, Notice No. 179/TB-VPCP dated June 22, 2022, Notice No. 207/TB-VPCP dated July 18, 2022 and Notice No. 280/TB-VPCP dated September 7, 2022.

Closely monitor economic developments and inflation to respond.

In the remaining months of 2022, ministries, branches and localities need to continue to promote and focus on closely monitoring the world economic and inflation developments affecting Vietnam to have appropriate response solutions; closely update the domestic supply and demand situation to have local contingency instructions to ensure supply and balance domestic supply and demand.

Conduct monetary policy according to set targets in coordination with fiscal policy and other policies to contribute to stabilizing the macro-economy, controlling inflation, and ensuring major balances of the economy.

For State-managed goods, public services are implementing a market roadmap (such as medical examination and treatment services, education services, electricity). The Ministries of Health, Education and Training, Industry and Trade and other ministries, branches and localities are proactive in calculating and preparing price options to implement adjustments at a time appropriate to regulations and the general context.

Ministries, branches and localities are responsible for organizing and closely monitoring the supply - demand and market price developments of goods under their management at each point in time to have appropriate management measures; proactively continue to remove difficulties for production, business and circulation to prepare reserve sources of goods, stabilize market prices, especially at the end of 2022 and the Lunar New Year 2023, prioritizing ensuring supply and ensuring balance of market supply and demand, especially for important and essential goods and services such as: gasoline, oil, food (pork, fresh livestock and poultry), construction materials, transportation services, essential consumer goods with high demand at the end of the year.

The Ministry of Industry and Trade and the Ministry of Finance, according to their assigned functions and tasks, shall closely follow the domestic and international petrol and oil market situation to implement stable and effective direction, management and operation; ensure petrol and oil supply for the domestic market, contribute to maintaining macroeconomic stability, controlling inflation and meeting production and consumption needs of businesses and people.

Organize inspection and examination of compliance with laws on prices

The Deputy Prime Minister requested ministries, branches and localities to flexibly and effectively use tools and measures to regulate prices in accordance with the law on prices to control and stabilize the market; strengthen the effective implementation and supervision of price declaration and price posting measures; publicize price information; organize inspections and checks on compliance with price laws, promptly detect, correct and overcome shortcomings and inadequacies, strictly handle violations of price laws; closely monitor price fluctuations of essential goods, especially those that still have price fluctuations in the context of falling gasoline and oil prices to have appropriate solutions for management, operation and price stabilization.

At the same time, continue to promote information and propaganda work, ensure timely and transparent information on prices and price management work of the Government and the Price Management Steering Committee, especially price developments of important materials and essential goods related to production and people's lives to limit the increase in expected inflation, stabilize consumer and business psychology.