Markets & Prices
Last updated: Wednesday, March 29, 2017
Year-End Pricing Regulation: Tight and Drastic Approach to Control InflationPosted: Tuesday, November 08, 2016
Deputy Prime Minister Vuong Dinh Hue, Head of Pricing Regulation Steering Committee, required careful, close and rigid approach to control inflation, according to the plan in year-end pricing regulation.
Finance Minister Dinh Tien Dung, Deputy Head of the Pricing Regulation Steering Committee, recently signed Document 639/TB-BCDDHG on communication on the conclusion of Deputy Prime Minister Vuong Dinh Hue at a meeting of the Steering Committee on October 19, 2016.
The notice clearly stated the conclusion, from now until the end of the year, pricing regulation is placed under growing pressures because consumer demands typically rise before Tet, or the Lunar New Year; unpredictable weathers impact food prices; and gasoline prices tend to look up. In addition, accelerated progress of public investment projects and credit policy lag are expected to partially drive inflation. Consequently, year-end pricing regulation requires a careful, close and rigid approach to control inflation according to the plan.
Authorities concerned are requested to closely monitor supply, demand and prices of essential commodities, especially food, formula milk for children, to have appropriate operating solutions. They necessarily apply price stabilisation measures for milk for kids under six years old till December 31, 2016 according to Resolution No. 33/NQ-CP of the Government dated April 30, 2015 and draw scenarios to report to the Prime Minister on regulation measures after the price stabilisation period is over.
Specifically, the Ministry of Industry and Trade is responsible for stabilising retail price of electricity, coordinating with the Ministry of Finance to manage domestic gasoline prices and rationally use the price stabilisation fund to avoid inflation, ensure market supply and demand balance of commodities it administers, and impose import quotas, particularly sugar.
The Ministry of Transport coordinates with the Ministry of Finance to actively guide investors in October 2016 to reduce BOT fees in at least 10 toll stations to create better sentiment in controlling inflation.
The Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development and relevant ministries coordinate with localities to prepare commodities for the market, ensure food hygiene and safety, prioritise clean products, prevent price fevers and ensure enough supplies during the Lunar New Year 2017.
The Ministry of Health, the Ministry of Finance, the Vietnam Social Insurance will organise public medicine tenders to pull down medicine prices. In the coming time, Deputy Prime Minister Vuong Dinh Hue will host a meeting with ministries to speed up the implementation. During 2016, prices of health services (including salaries and allowances) will not be raised. The ministry will guide provincial/municipal governments to prepare scenarios, roadmaps and price hikes in 2017.
As for medical service prices paid by health insurance funds, the Ministry of Health will coordinate with the General Statistics Office (GSO) and relevant bodies to consider and calculate price growth and time of application after taking salary and allowance increases into account to control inflation.