Viet Nam's price administration and stabilisation policies, especially for essential goods, will keep following market mechanisms and the rules of balancing cross interests this year.— VNA/VNS Photo Thanh Vu

HA NOI (Biz Hub)— Viet Nam's price administration and stabilisation policies, especially for essential goods, will keep following market mechanisms and the rules of balancing cross interests this year.

Economist Vu Dinh Anh said market prices in 2014 will see a certain impact from traditional price policies and a temporary decline in gross investment and consumption.

The relaxation of fiscal policies and the issuance of VND17 trillion (US$809 million) worth of investment bonds during 2011-15 will also affect prices on the ground.

The government's attempts to help enterprises overcome crises and accelerate economic growth will help to circulate the widespread flow of money more rapidly, and this will likely put some pressure on inflation.

Economists argue that any change in prices this year should depend on the administration of electricity, coal, fuel, healthcare services, and education.

Tran Van Hieu, deputy minister of finance, confirmed that essential items will be managed according to the market-oriented principles formed by the State's administration.

Experts called for a flexible approach to issuing, allocating and implementing policies with a provision for minimising the impact on the market. The State was also expected to apply anti-monopolistic measures to raise competitiveness.

Prices will be publicised to reinforce public scrutiny.

Prime Minister Nguyen Tan Dung instructed the Ministry of Finance (MoF) to improve price administration for goods, especially essential items, to curb speculation and unreasonable prices.

In an attempt to control and stabilise prices prior to and during Lunar New Year 2014 (Tet), MoF collaborated with the Ministry of Industry and Trade to investigate the prices and quality of commodities and essential goods that will be used during the festive season.

Nguyen Anh Tuan, head of the Price Administration Department, noted that the initial investigation showed that the market had a stable supply of goods, so there will not be much pressure on price administration.

Price administration in 2013 has been well appraised. MoF's Price Administration Department explained that the movements of prices last year were the same as those seen every year. The department's efforts helped keep the prices reasonable and stable. — VNS