Ensure stability and prevent fluctuation in price levels

The domestic supply and demand balance and price stability need to be ensured. Photo: H.Anh

On June 22, Prime Minister Pham Minh Chinh signed and issued Official Telegram No. 61/CD-TTg sending to Ministers, Heads of ministerial-level agencies, and agencies under the Government; Chairman of People’s Committees of provinces and centrally run cities on strengthening price management and administration measures.

The Official Telegram clearly stated that in the coming time, the pressure from implementing the market roadmap for State-managed products; the increase in the cost of importing raw materials and fuel and sea transport costs; the implementation of salary reform… require all levels and sectors to proactively evaluate and grasp the situation to promptly provide appropriate, effective, and practical response plans and solutions.

Notably, the Government proposed to revise up the base salary from the VND1.8 million to VND2.34 million/month (up 30%) from July 1.

In order to proactively have timely and effective policy responses, the Prime Minister has requested the agencies to continue to follow directions of the Head of the Price Management Steering Committee; closely monitor market developments, promptly implement solutions to ensure domestic supply and demand balance, stabilize prices, and prevent product shortages, goods hoarding and speculation, and unreasonable price increases.

At the same time, it is necessary to ensure smooth supply, circulation and distribution of goods and services; promote the effective implementation and supervision of measures to declare prices and publicize price in line with regulations; continue to implement the roadmap for adjusting public service prices under the market roadmap and for items managed by the State in accordance with market principles, calculate and prepare price options and price adjustment roadmaps, prevent major fluctuation in price levels, and not to increase prices suddenly or at the same time…

The Prime Minister requests the Ministry of Finance to coordinate with the Ministry of Planning and Investment, the State Bank, the General Statistics Office, and relevant agencies and localities to promote the implementation of synthesizing, analyzing, forecasting market prices, updating specific, and timely price management scenarios for the remaining months of the year to advise the Government and Prime Minister on appropriate measures, ensuring the target of controlling inflation in 2024 within the limit of 4-4.5% in accordance with the Resolution of the National Assembly in all situations, and striving for about 4%.

Notably, the Prime Minister requests units to focus on expediting dissemination and transparency of price information. The units need to widely announce the public before adjusting the prices of State-managed goods to avoid inaccurate information, causing public confusion and loss to the State and consumers.

On June 24, Notice 274/TB-VPCP on conclusion of Deputy Prime Minister Le Minh Khai, Head of the Price Management Steering Committee at the Steering Committee meeting on results of price management in the first months of 2024 and price management orientation for the remaining months of 2024, also requires ministries, branches and localities to focus on implementing tasks.

Mr. Pham Van Binh, Deputy Director of the Price Management Department (Ministry of Finance), in order to stabilize the macroeconomy and control inflation under the goals set by the National Assembly, from the beginning of the year, the Government, the Prime Minister, Deputy Prime Minister – Head of the Price Management Steering Committee have directed ministries, branches and localities to drastically implement many solutions.

The Ministry of Finance, as the standing agency of the Steering Committee, has cooperated effectively with relevant ministries and agencies to closely monitor market price developments, proactively forecasted, calculated and updated inflation scenarios to advise competent authorities to develop an overall price management scenario, as well as deploy specific solutions. The Ministry of Finance has coordinated with ministries and branches to develop and update inflation scenarios as a basis for recommendations and advice on appropriate price management and regulation measures to control inflation.

At the recent 2nd quarter press conference of the Ministry of Finance, Deputy Minister of Finance Nguyen Duc Chi also said that the situation of “the salary has not increased, prices have increased” has occurred many times before, but in recent years, the Government, the market and the people have adapted to not be affected when increasing the salary.