The Ministry of Finance (MoF)'s Price Management Department will actively set up scenarios for managing prices of essential goods according to the market performance, but still ensuring inflation control as targeted, said Nguyen Anh Tuan, director of the Price Management Department.

Tuan said the National Assembly had set a target of consumer price index (CPI) growth at about 4 per cent for this year.

“The most important thing is to control the prices on the domestic market according to the mandate from the central administration to the local level. Another important factor is providing information about the market performance as well as policies on controlling prices issued by the Government,” Tuan said.

The state management of prices had gradually implemented and promptly adjusted prices of a number of important goods and services in the domestic economy or goods according to the market demand.

In addition, the role and duties of the State in management, administration and price stabilisation had also been clarified through macroeconomic mechanisms and solutions that are suitable to requirements in the economic development process.

Therefore, the representative of the department said that it would closely monitor price fluctuations on the domestic market, especially essential goods and services, to promptly propose solutions on ensuring the balance between supply and demand, especially goods with a shortage of supply due to natural disasters, pandemic and high demand of goods before, during and after Tet.

In addition, the Ministry of Finance (MoF) had recommended that ministries and sectors continue to closely follow the market price situation for specific management. For instance, the Ministry of Industry and Trade needed to work closely with the MoF in managing the petroleum price based on the market factors and the Petroleum Price Stabilisation Fund.

For electricity, it was necessary to carefully evaluate factors affecting the electricity price, thereby having a suitable price management scenario.

Tuan said this year, the prices of essential goods were expected to be unchanged. Meanwhile, the prices of some goods were very unpredictable due to impacts from negative factors for prices, such as fuel products with complicated fluctuations.

He also forecast that storms and floods, as well as the COVID-19 pandemic, were affecting the supply and the market.

The business situation of some services such as accommodation, tourism, entertainment and aviation was forecast to face many difficulties.

According to the General Statistics Office (GSO), Viet Nam’s consumer price index (CPI) in the first four months grew 0.89 per cent year-on-year, the lowest growth rate since 2016.

The index in April was down 0.04 per cent against the previous month while up to 2.7 per cent year on year.

Compared to the previous month, a downturn was seen in the prices of four out of 11 main groups of goods and services, with housing and construction materials taking the lead (0.43 per cent), followed by post and telecommunication services; food and catering services, among others. — VNS