Price management in 2025: Good control of inflation while promoting resources for the highest economic growth

The Government Office issued Notice No. 65/TB-VPCP dated February 26, 2025, concluding the conclusion of Deputy Prime Minister Ho Duc Phoc - Head of the Steering Committee for Price Management at the Steering Committee meeting on the results of price management and operation in 2024 and orientation for price management in 2025.

Price management and operation in 2025 is determined to control inflation well so that the economy can achieve the highest growth.

The announcement stated: Price management and operation in 2024 will face many challenges due to the complicated and unpredictable developments in the world economy, geopolitical instability factors that are still lingering, and escalating conflicts in some regions of the world. Although the global economy has some bright spots when global inflationary pressure gradually decreases, creating conditions for countries to implement monetary easing policies and increasing labor supply, in general, the economy in 2024 will still maintain a slow and uneven recovery trend; prices of strategic commodities in the world market will continue to have complicated developments such as the prices of some metal products (gold, silver) increasing sharply, prices of some agricultural products also increasing sharply such as coffee, cocoa; gasoline prices, on the contrary, fluctuate in a downward trend towards the end of the year. Entering January 2025, the world economy continues to be affected in many ways, including the new US tariff policy causing concerns about inflation risks, increasing trade tensions between major countries and affecting economic growth.

Regarding the domestic situation, our economy continues to recover and grow in the context of complicated developments in the world economy. Domestic supply of goods is guaranteed, purchasing power is maintained, although not yet increased sharply. Domestic market prices fluctuate according to the rule of increasing in the first month of the Lunar New Year, then basically stabilize in the second quarter due to abundant supply of goods. In the last 6 months of the year, the consumer price index increased slightly, mainly due to the impact of the increase in basic salary from July and the increase in food and foodstuff prices in provinces and cities directly affected by storms and floods, the average retail price of electricity increased from October and the price of medical services increased due to the structure of additional salary costs according to the basic salary of 2.34 million VND. The average CPI in 2024 increased by 3.63% compared to 2023, within the target of controlling inflation for the whole year set by the National Assembly and the Government.

In order to stabilize the macro-economy, control inflation according to the targets set by the National Assembly and implement the roadmap for market prices of public services and goods managed by the State, in 2024, the Government, the Prime Minister, Deputy Prime Minister Ho Duc Phoc - Head of the Steering Committee for Price Management have directed ministries, branches and localities to resolutely implement many solutions such as: (i) ensuring smooth and increasing the supply of essential goods and services to meet people's consumption needs, promptly issuing national reserve goods to support and provide relief to people affected by storms and floods, promoting the recovery of agricultural production after storms; (ii) focusing on and strengthening price management and operation during holidays, natural disasters, storms and floods, and the time of increasing the basic salary; (iii) promptly preparing a plan for price management of State-priced goods and public services according to the market roadmap; (iv) operating monetary policy proactively, flexibly, promptly and effectively; (v) continue to implement support policies on taxes, fees, and charges to support people and businesses; (vi) organize and closely monitor the supply and demand and market prices of essential goods to have appropriate management measures.

2025 is the last year of implementing the 5-year socio-economic development plan 2021-2025, a year of special significance in successfully implementing the Resolution of the 13th National Party Congress. Entering 2025, in the context of the world and domestic economy still facing many difficulties and challenges, complex global geopolitical fluctuations that can disrupt the global supply chain, natural disasters, epidemics, and increasingly unpredictable climate change increase risks to maritime security, energy security and world food security, along with adjustments in tariff and economic-trade policies of some major countries that can have a profound impact on the global economy, thereby leading to unpredictable fluctuations in the prices of some strategic commodities.

To carry out the tasks set by the National Assembly and the Government, the Deputy Prime Minister requested that the price management and operation in 2025 must effectively control inflation in the context of strongly promoting resources to achieve the highest economic growth, while continuing to support the removal of difficulties for production, business and people's lives, continuing to implement the roadmap for market prices of public services and goods managed by the State at appropriate levels and doses according to the developments of the consumer price index. To proactively respond to the challenges in price management in 2025, ministries, branches and localities, according to their assigned functions and tasks, must proactively promote the drastic, timely and effective implementation of the tasks and solutions set out in the Government's Resolutions and the directions of the Prime Minister and Deputy Prime Minister Ho Duc Phoc - Head of the Price Management Steering Committee.

Strive to control the average consumer price index in 2025 at about 4.15%

In particular, ministries, branches and localities need to proactively forecast, calculate, develop and update price management scenarios for essential goods according to the market roadmap to ensure inflation control according to the set target. In 2025, ministries managing sectors and fields will be proactive in calculating and promptly preparing price plans and price adjustment roadmaps for goods to avoid being passive in policy coordination; proactively coordinate with the General Statistics Office to assess the impact on CPI to ensure inflation control; develop and update price management scenarios for each item under their management authority quarterly and annually and send them to the Ministry of Finance for synthesis, development and update of general inflation scenarios, striving to control the average consumer price index in 2025 at about 4.15%.

At the same time, proactively monitor closely the price developments of strategic commodities in the world market, economic developments and world inflation affecting Vietnam to have appropriate response solutions, promptly warn of risks affecting domestic price levels, proactively implement according to authority or propose, advise competent authorities on appropriate, flexible, timely measures, solutions, and response scenarios, ensuring the target of controlling inflation in 2025 according to the set target.

Organize inspection and examination of compliance with laws on prices

Ministries, sectors and localities must proactively grasp the market, balance supply and demand, and commodity prices to have appropriate and effective solutions to stabilize the market, especially for essential goods and services such as gasoline, electricity and important input materials for production. Focus on maintaining the supply of imported raw materials from major markets to ensure that domestic production industries are not interrupted and maintain stable operations. Encourage Vietnamese consumers to prioritize using Vietnamese goods, promote domestic market development, stimulate consumption, and link production, distribution and consumption.

Conduct monetary policy proactively, flexibly, promptly, effectively, and harmoniously coordinate with fiscal policy and other policies to contribute to promoting growth, stabilizing the macro-economy, stabilizing exchange rates, controlling inflation, and ensuring major balances of the economy.

At the same time, flexibly and effectively use tools and measures to regulate prices according to the provisions of the law on prices to control and stabilize the market. Strengthen the effective implementation and supervision of price declaration and posting measures; publicize price information; organize inspections and checks on compliance with the law on prices, and strictly handle violations of the law on prices.

Ministries, branches and localities 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 limit expected inflation, stabilize consumer and business psychology right from the beginning of the year.

The Ministry of Finance urgently drafts and submits to the Prime Minister for promulgation a Directive on strictly implementing the provisions of the Law on Prices, publicizing and posting prices to protect the rights of consumers, providing transparent and objective information to buyers, and preventing cases of price manipulation and price hikes in February 2025.

Closely monitor supply and demand developments and market prices of goods to have appropriate management measures.

Ministries, branches and localities organize and closely monitor the supply and demand developments and market prices of goods under their management to have appropriate management measures, including:

- Petroleum: The Ministry of Industry and Trade shall preside over and coordinate with relevant agencies to synchronously and effectively implement solutions to ensure petroleum supply for the domestic market in all situations and regulate petroleum prices according to regulations; strengthen market inspection and supervision, strictly handle violations; absolutely do not allow shortages or interruptions in petroleum supply... work closely with domestic factories to grasp the annual supply output plan. At the same time, identify appropriate import sources to ensure sufficient goods, avoid shortages, and focus on petroleum reserves to ensure stable and timely supply in all situations.

- For electricity, medical examination and treatment services and items under consideration for price adjustment: The Ministry of Industry and Trade, the Ministry of Health and other ministries and branches, according to their assigned functions and tasks, shall proactively review carefully the price formation factors, coordinate with the General Statistics Office to carefully assess the impact on the socio-economy and price levels to proactively have adjustment plans according to their authority or promptly submit to competent authorities for consideration of price adjustment plans in accordance with developments and market price items in accordance with regulations with appropriate adjustment levels and timing, avoiding causing cost-push inflation resonance, creating expected inflation of the economy.

- Food: The Ministry of Agriculture and Rural Development shall preside over and coordinate with the Ministry of Industry and Trade to closely monitor the production situation, price fluctuations of input factors, and market demand for essential agricultural products such as rice, pork, agricultural materials, etc. to promptly regulate supply and demand of goods to serve domestic needs, between regions, localities, and export needs to stabilize market prices.

- Construction materials: The Ministry of Construction closely monitors the situation and developments in the construction materials market, especially key materials, and reports to the Prime Minister on solutions to ensure supply and demand and stabilize construction material prices.

- Land and real estate: (i) The Ministry of Natural Resources and Environment, the Ministry of Construction and the People's Committees of provinces and centrally run cities shall enhance the effectiveness and efficiency of land management, resolutely implement solutions to promote the safe, healthy and sustainable development of the real estate market; closely monitor and update land price fluctuations in the market; gradually build a database on land prices for each plot of land linked to the land database. Focus on building and perfecting legal documents and economic and technical norms on land prices under their authority to effectively implement the 2024 Land Law and guiding documents. (ii) The Ministry of Finance shall preside over and coordinate with the Ministry of Natural Resources and Environment to study and complete regulations on land use fees and land rent policies, and the Decree regulating land use fees and land rent, in which it is necessary to calculate and propose regulatory tools such as coefficients and rates on annual land rent, ensuring compliance with market conditions and legal regulations.

- Air transport: The Ministry of Transport shall synchronously and effectively implement solutions according to regulations to ensure and stabilize air transport capacity to provide appropriate and balanced loads on domestic/international routes and markets, well meeting the air travel needs of passengers, especially during peak periods of holidays and Tet.

- Education services: The Ministry of Education and Training and the Ministry of Labor, War Invalids and Social Affairs proactively collect information on tuition fee adjustments of public preschool, general education, vocational education and higher education institutions for the 2025-2026 school year to have an overall assessment of the increase level and implementation status.

- Textbooks: The Ministry of Education and Training continues to collect information and monitor price declaration activities of publishers and businesses to promptly have appropriate solutions according to regulations, ensuring stability of the textbook market.

- Gold market: The State Bank of Vietnam coordinates with relevant agencies to implement effective and appropriate solutions to manage the gold market, ensuring the stable, public and transparent operation of the gold market; strengthen inspection, examination, control, prevention and strict handling of gold smuggling.

- Regarding the price management of other important and essential goods, ministries, branches and localities, according to their assigned functions and tasks, proactively organize to closely monitor the developments of supply and demand, market prices of goods under their management to have appropriate management measures..., to avoid shortages and disruptions in goods sources causing sudden price increases.

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