Vietnam to Curb Inflation to below 7% This Year: Official

Consumer goods prices in Vietnam are forecast not to fluctuate much from now through the end of the year and the government’s target of curbing inflation below 7% will be achievable, according to a finance ministry official.

 

Nguyen Tien Thoa, head of the Ministry of Finance’s Prices Management Department told reporters of the VOV that the global economic recovery is still fragile, which will not result in hikes in producer prices as high as expected before. China has stopped its plans to stockpile raw materials.

 

Crude oil prices on the world market are forecast to trade around US$70 per barrel from now through the end of 2009.

 

Meanwhile, the government’s stimulus efforts including extension low-cost loans for local companies by two more years combined with stockpiling of goods by provinces and cities as well as firms will help curb inflation below 7% this year, Thoa said.

 

Thoa also proposed the government prioritize its stimulus efforts to balance supply and demand with the focus on good production, to cap credit growth at 30%, stabilize benchmark interest, and forex rates and stir up fights against trade frauds.

 

CPI for September was up 0.63% and is forecast to rise further this October, the VOV said.

 

Inflation is forecast at below 10% next year, Thoa said. (VOV)