Ensuring supply and stabilizing the market at the end of the year and Tet Giap Thin

The Government Office has just issued Notice No. 419/TB-VPCP conveying the concluding opinion of Deputy Prime Minister Le Minh Khai - Head of the Price Management Steering Committee at the meeting of the Price Management Steering Committee on the results of price management and administration in the first 9 months of 2023 and the orientation of price management and administration in the last months of 2023.

The announcement stated: In the first 9 months of 2023 and the first week of October, the world commodity market has many fluctuations and is affected by economic, political and social factors. The Russia-Ukraine military conflict continues along with increasing instability in the Middle East. Many central banks maintain tight monetary policies. The world economy continues to grow slowly despite some signs of improvement but not significantly while many risks and challenges are increasing, affecting growth in 2024 and in the medium term. Inflation in many countries has cooled down but remains high, not reaching the expected long-term target.

Domestically, prices, market supply and demand are basically stable, inflation is being controlled lower than the set target and is on a downward trend. The consumer price index (CPI) in September increased by 3.66% over the same period last year, the average increase in the first 9 months of 2023 was 3.16%. Up to now, if there are no unusual fluctuations, controlling inflation according to the target of below 4.5% is feasible.

This result demonstrates the drastic and flexible direction of the Government and the Prime Minister, the timely advice of the Price Management Steering Committee, and the efforts of ministries, branches, and localities in directing, managing prices, and controlling inflation according to the targets set by the National Assembly. Prices of important and essential goods are basically stable, meeting people's needs. Prices of state-managed goods are managed at a reasonable level. Fiscal policies to effectively reduce taxes and fees, flexible monetary policies, reduce interest rates, and keep the basic exchange rate from fluctuating significantly help to remove difficulties, actively support growth recovery, and control inflation. The Deputy Prime Minister commended the efforts of ministries, branches, and localities that have actively, proactively, and seriously implemented the directions of the Government, the Prime Minister, and the Price Management Steering Committee. In addition to the achieved results, there are still some issues that need to be learned from in the management work such as: some assigned tasks still have problems, have not achieved the set progress, and sometimes have not taken advantage of opportunities and favorable conditions to manage public service prices according to the market roadmap.

In the remaining months of 2023, the world situation is forecast to continue to be complicated and unpredictable. Oil prices on the world market may fluctuate and increase at the end of the year. Food prices are forecast to continue to fluctuate at a level that is beneficial to producers. Prices of essential goods often fluctuate at the end of the year because consumer demand usually increases according to the law. To be proactive in price management and control and inflation control in the remaining months of 2023, the Deputy Prime Minister requested ministries, branches and localities to proactively promote the implementation of solutions of the Government and Prime Minister in Directive No. 03/CT-TTg dated January 27, 2023, the Deputy Prime Minister - Head of the Steering Committee for Price Management assigned in Notice No. 04/TB-VPCP dated January 5, 2023, Notice No. 118/TB-VPCP dated April 10, 2023 and Notice No. 348/TB-VPCP dated August 24, 2023.

Continue to implement policies on tax, fee and charge exemption, reduction and extension

In particular, ministries, branches and localities need to continue to closely monitor economic developments and world inflation; closely update the supply and demand situation of strategic goods prices in the international market to promptly warn of risks and propose appropriate response measures to ensure supply and stabilize domestic prices.

Continue to implement a proactive, flexible, timely, effective monetary policy, in close, synchronous, and harmonious coordination with fiscal policy and other macroeconomic policies; manage exchange rates in accordance with the situation, contributing to controlling inflation, stabilizing the macro economy, stabilizing the money and foreign exchange markets. Control core inflation and create a basis for controlling general inflation.

Continue to effectively implement policies on tax, fee, charge and land rent exemption, reduction and extension that have been issued. Study and review policies that are effective until the end of 2023, promptly propose and report to competent authorities for extension if necessary to continue to remove difficulties for production, business and people's lives. Focus on budget collection, ensure correct, sufficient and timely collection, strive to achieve the state budget estimate, strictly control expenditures, thoroughly save regular expenditures and expenditures that are not really necessary.

Have plans to minimize negative impacts on the poor

In the fourth quarter of 2023, under the condition that there is still room to control inflation according to the target set by the National Assembly at 4.5%, ministries, branches and localities should proactively review plans to adjust prices of state-managed goods and public services that are implementing the market roadmap, carefully assess the impact on price levels and inflation control targets to have a plan to adjust prices according to their authority or submit it to competent authorities for consideration and decision according to the roadmap, timing and appropriate level. At the same time, it is necessary to have a plan to minimize negative impacts on the poor and vulnerable groups from the impacts of price adjustments of essential goods.

Checking compliance with price laws

Ministries, branches, People's Committees of provinces and centrally run cities shall proactively carry out state management of goods under their authority, closely monitor the supply and demand developments, and market prices of goods under their management to have appropriate management measures. Carry out assessment of market demand and response capacity, proactively prepare adequate sources of goods to have appropriate solutions for production, storage, and regulation of goods, ensure supply, and stabilize market prices for the end of the year and the Lunar New Year of Giap Thin in 2024, especially for important and essential goods such as: gasoline, food, foodstuffs (pork, fresh livestock and poultry), construction materials, and essential consumer goods with high demand at the end of the year. Strengthen the work of synthesizing, analyzing, and forecasting market prices and implementing timely reporting regimes according to regulations.

Strengthen inspection and supervision of price declaration and posting measures; publicize price information; inspect compliance with price laws; strictly handle cases of speculation, hoarding and unreasonable price increases; proactively inspect price formation factors according to the provisions of the Price Law when goods have unusual fluctuations.

Continue to promote information and propaganda work, ensure timely and transparent information on prices and price management work of the Government and the Price Management Steering Committee, especially price developments of important materials and essential goods related to production and people's lives to control expected inflation and stabilize consumer and business psychology.

Focus on building and perfecting institutions to implement and guide the 2023 Law on Prices to ensure consistency, synchronization and effectiveness in implementation.

Develop appropriate electricity price adjustment plans

Regarding electricity, the Deputy Prime Minister requested the Ministry of Industry and Trade to urgently direct the Vietnam Electricity Group to develop plans to adjust electricity prices in accordance with its assigned authority, functions and tasks; closely coordinate with relevant ministries and agencies to assess impacts, ensure consistency with the practical situation, the goal of controlling inflation, promoting economic recovery and growth, including researching and proposing appropriate, timely and feasible policies and solutions to support poor households, policy households and vulnerable groups in accordance with the law; report to the Government Standing Committee before October 25 in accordance with the Government's resolution in Resolution No. 164/NQ-CP dated October 4, 2023, and the Prime Minister's direction in Document No. 944/TTg-KTTH dated October 10, 2023.

There is a solution to ensure the supply of gasoline and oil prices.

Regarding petroleum, the Ministry of Industry and Trade closely monitors the developments in world petroleum prices and continues to closely coordinate with the Ministry of Finance to manage petroleum prices according to regulations; has solutions to ensure the supply of petroleum prices and prepare response scenarios when market prices fluctuate, ensuring the smooth operation of the petroleum distribution system. Urgently complete procedures to submit to the Government for promulgation of a Decree amending and supplementing Decree No. 95/2021/ND-CP dated November 1, 2021 and Decree No. 83/2014/ND-CP dated September 3, 2014 on petroleum trading.

The Deputy Prime Minister also requested the Ministry of Health to urgently complete and issue a Circular adjusting prices of medical examination and treatment services according to the basic salary level before October 17, 2023; promptly report to competent authorities for consideration and decision on issuance according to shortened procedures if necessary.

Regarding construction materials, localities, according to their functions and tasks, should strengthen inspection, control and supervision of supply and demand, and market prices of construction materials, especially construction sand and leveling sand, focusing on solutions to ensure supply, so as not to affect the construction progress of key construction projects.

Ministries and branches that are members of the Steering Committee for Price Management shall closely follow the plan set out by the Steering Committee from the beginning of the year to proactively develop implementation plans and periodically report on implementation results as well as difficulties and problems every quarter to propose timely adjustments to the Steering Committee; at the same time, promote coordination in synthesizing, analyzing and forecasting market prices, regularly monitor and evaluate market price fluctuations to update the situation, develop market price reports on goods under management and promptly report directly or coordinate with the Ministry of Finance, the Standing Office of the Steering Committee to report to the Government, the Prime Minister, and the Head of the Steering Committee for Price Management to ensure timely information for price management.