Prime Minister continues to direct price reduction of some goods

For vegetables, the demand for vegetables for 96 million people in 1 year is about 14 million tons, so in addition to ensuring domestic consumption, there will be about 4 million tons of commercial vegetables for processing and export.

Regarding pig farming, the slow herd recovery rate is one of the reasons for the recent increase in pork prices. With the expected production capacity, the total output of live pigs for slaughter in 2020 is equivalent to 2018, by quarter, the second quarter of 2020 reached more than 900 thousand tons, the third quarter reached more than 1 million tons, and the fourth quarter was nearly 1.1 million tons. Thus, by the third and fourth quarters, we will basically meet most of the demand for pork. According to data from the General Department of Customs, to date, we have imported more than 45,000 tons of pork.

According to the Ministry of Industry and Trade, the retail price of finished pork depends on the price of live pigs. The higher the price of live pigs, the higher the retail price of finished pork. The price of live pigs in early April 2020 was 73,000-78,000 VND/kg, the price of finished pork at the market was commonly 130,000-150,000 VND/kg. Currently, the price of live pigs is 80,000-90,000 VND/kg and the price of finished pork at the market is commonly 145,000-165,000 VND/kg.

According to the General Statistics Office, intermediate costs in pork prices are still high, accounting for 70-90%.

The report of the Price Management Steering Committee also stated that the current intermediary cost compared to the time before the African swine fever epidemic was about 23,000-28,000 VND/kg. Therefore, reviewing and reorganizing the market system in a streamlined direction, reducing intermediary and distribution channels will contribute to reducing pork prices.

According to the Ministry of Planning and Investment, the total support packages that the Government has launched are about 636,000 billion VND (about 10% of GDP) and do not affect the CPI. The representative of this Ministry also agreed that the current difference between the price of live pigs and the price of finished pork products is too high.

Strictly handle cases of delay and'price situation is too bad'

Concluding the meeting, the Prime Minister stated that the State must better manage the issue of prices in accordance with legal regulations, resolutely fight against speculation, price hikes, market disruption, and illegal enrichment. “If we loosen up, it is a mistake.” Never think that according to the market economy, we can loosen up management. “If growth is good but prices increase, people’s lives will be affected,” the Prime Minister emphasized. We must do well in two aspects: good growth and stable prices, ensuring people’s lives, especially those in difficult circumstances.

The Prime Minister assigned the Ministry of Finance to preside over, together with the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the State Bank of Vietnam, the Government Office and relevant agencies, to prepare a draft conclusion of the meeting of the Head of the Price Management Steering Committee. In this conclusion, the Prime Minister noted to clearly state specific tasks and solutions, assign specific tasks, and have strict sanctions for cases of delay, neglect, and violations of regulations, "working too slowly so that the price situation becomes too bad".

After listening to the discussion opinions, the Prime Minister stated clearly, "we can say that we have completely controlled this year's inflation target" (controlling the consumer price index below 4% according to the National Assembly's Resolution).

Implement synchronous and effective solutions to soon reduce pork prices to around 60,000 VND/kg. Stabilize rice prices, reduce electricity and water prices, stabilize prices of essential goods and services to help remove difficulties in production and people's lives due to the impact of the COVID-19 pandemic.

The Prime Minister assigned the Ministry of Finance to preside over and work with relevant ministries and agencies to absorb opinions at the meeting, continue to review and complete scenarios and plans for price management of each product and each item to ensure control of CPI growth rate below 4% in 2020.

Absolutely do not be subjective, closely monitor and grasp the developments in domestic and international market prices, do a good job of analysis and forecasting, especially for important items.

Considering that the current increase in pork price of more than 90,000 VND/kg is “excessive”, the Prime Minister raised the question, “Do pig farmers benefit or only a part of them?”. The Prime Minister assigned the Ministry of Agriculture and Rural Development, Industry and Trade, Finance, and the Public Security to immediately implement solutions to stabilize pork prices, first of all checking prices, especially large-scale pig farming enterprises, to have effective measures. “We encourage enterprises, but we must allocate profits reasonably.”

The cost of intermediary is very high, so we must ensure the harmony of interests among the stages of breeding, processing, distribution, circulation, and consumption. If price manipulation, speculation, or profiteering is discovered, it must be handled according to the law.

Along with increasing domestic pork supply, increasing imports is needed to ensure a balance between pork supply and demand in both the short and long term. The Prime Minister also suggested educating people to change their consumption habits.

Regarding the issue of including pork in the list of goods and services subject to price stabilization, the Prime Minister requested the Ministry of Industry and Trade and ministries and branches to carefully study, clearly assess the impact and influence, and have a specific plan to report to competent authorities according to regulations.

Regarding rice, the Prime Minister emphasized the spirit of controlled export to ensure food security and farmers' rights, correct recent deviations, and strictly handle violations.

Regarding gasoline prices, the Ministry of Industry and Trade will take the lead with other ministries to urgently review, complete, and submit for promulgation a decree amending and supplementing Decree No. 83 on gasoline trading. This issue has been raised since the end of the previous term, but after nearly 5 years it has not been completed. The Ministry of Industry and Trade needs to learn from this experience. Ministries, first of all the Ministry of Industry and Trade and the Ministry of Finance, closely monitor crude oil price developments, have specific scenarios and plans for gasoline price management, effectively combining the price stabilization fund, so as not to affect production and business and the general price level.

The Ministries of Health, Education and Training, Industry and Trade, Transport, Construction and relevant agencies must take specific measures to reduce prices of medical supplies and equipment, textbooks, transportation services, stabilize prices of construction materials and essential goods to help reduce living difficulties, reduce production and business costs, and stabilize market prices.

The Prime Minister requested that local People's Committee Chairmen strictly implement the Prime Minister's direction on reducing clean water prices within their authority.

The Ministry of Industry and Trade, the Ministry of Finance, localities and competent authorities must strictly manage market prices, ensure adequate supply and demand of essential goods for production and life, and prevent hoarding and unreasonable price increases.

Regarding the roadmap for salary increase from July 1 and price adjustment of medical services (also from July 1) and education (from September), the Ministry of Finance will preside over and work with the Ministry of Education and Training, the Ministry of Health, and relevant agencies to research and fully and thoroughly assess the impacts and influences to promptly report and propose to competent authorities on this matter, with the spirit of only increasing service prices when the price index is controlled, at the appropriate time, ensuring that it does not affect the price management target.