The Government Office has just issued Notice No. 193/TB-VPCP conveying the concluding opinion of Deputy Prime Minister Le Minh Khai - Head of the Steering Committee for Price Management at the Steering Committee meeting on the results of price management and operation in the first quarter of 2024 and the orientation for price management in the remaining months of 2024.
The announcement stated: According to the report of the Ministry of Finance, the management and operation of prices in the first quarter of 2024 continues to face many pressures due to rapid and complex fluctuations in the world and regional context. Military conflicts and strategic competition between major countries continue to develop complicatedly, increasing risks of energy security, food security, inflation, and disruption of global supply chains; prices of gasoline and oil, and input materials for production fluctuate unpredictably.
Domestically, market prices in the first months of the year tend to increase due to increased demand near and after Tet, similar to previous years. According to data from the General Statistics Office, the average CPI in the first quarter of 2024 increased by 3.77%, core inflation increased by 2.81%, basically within the allowable limit but need to continue to be monitored because the prices of many goods tend to increase, increasing inflationary pressure as well as price management and operation.
Right from the beginning of the year, in order to ensure the goal of stabilizing the macro economy, promoting growth, controlling inflation, ensuring major balances of the economy according to the goals set by the National Assembly, the Government, the Prime Minister, and the Steering Committee for Price Management have directed ministries, branches, and localities to resolutely implement tasks and solutions to ensure smooth supply, circulation, and distribution of goods and services, especially for strategic goods; focus on and strengthen price management and operation during holidays and Tet; proactively plan and operate prices of State-priced goods and public services according to the market roadmap; proactively, flexibly, promptly, and effectively operate monetary policy; closely, harmoniously, and synchronously coordinate with fiscal policy and other macroeconomic policies; continue to implement policies on tax exemption and reduction to support people and businesses; Closely monitor supply and demand developments and market prices, especially essential goods, to proactively have appropriate and timely solutions and management measures to meet practical requirements for price management and operation.
It is forecasted that in the coming time, price management and operation will continue to be under great pressure due to the impact of developments, the world and regional situation continues to evolve rapidly, complicatedly, and unpredictably. Military conflicts have not shown signs of cooling down, continuing to escalate in some areas affecting the prices of energy, raw materials, and shipping costs by sea; production and business activities of enterprises still face many difficulties; exchange rates and inflationary pressures tend to increase... increasing pressure on price management and operation in the second quarter and the last months of 2024.
To proactively respond to challenges in price management in the second quarter and the remaining months of 2024, Deputy Prime Minister Le Minh Khai requested ministries, branches and localities, according to their assigned functions and tasks, to promote drastic, timely and effective implementation of tasks and solutions set out in the Government's Resolutions, Directive No. 12/CT-TTg and directive documents of the Prime Minister, and Notice No. 36/TB-VPCP of the Head of the Price Management Steering Committee.
In particular, ministries, branches and localities focus on monitoring and closely following developments at home and abroad, closely monitoring fluctuations in world and domestic commodity prices, promptly warning of risks affecting domestic price levels, proactively implementing within their authority or proposing and advising competent authorities on appropriate, flexible and timely measures, solutions and response scenarios, 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.
The Ministry of Finance - the standing agency of the Steering Committee presides over and coordinates with relevant ministries and agencies to closely monitor the situation, proactively forecast, calculate and update inflation scenarios to develop an overall price management scenario associated with price plans and roadmaps for adjusting prices of goods and services appropriately, flexibly, promptly and effectively, ensuring the target of controlling inflation within the set limits.
Ministries: Industry and Trade, Health, Education and Training, ministries and agencies according to their assigned functions and tasks must closely monitor the situation to develop and update price management plans and scenarios for specific items under their management; strengthen close coordination with the Ministry of Finance, the General Statistics Office and relevant ministries and agencies to analyze, forecast and assess the impact and price fluctuations of items under their management on the general price level to update the overall price management scenario and price management scenarios and plans for specific items under their management, ensuring effectiveness, synchronization, unity and ensuring the target of controlling inflation within the set limits.
Based on the overall management scenario and specific management scenario, ministries, agencies and localities, according to their assigned functions and tasks, closely monitor the developments in supply and demand, market prices, proactively take appropriate and timely management measures and solutions within their authority, flexibly and effectively manage tools and measures to regulate prices in accordance with the provisions of the law on prices to control and stabilize the market according to the proposed scenario; proactively forecast and have plans to ensure balance between supply and demand, regulate production activities, ensure supply, circulation and distribution, and prevent shortages, disruptions in goods sources, and sudden price increases, especially for essential goods and services, items with high weights in the consumer price index; promptly report directly or coordinate with the Ministry of Finance to report to the Government, the Prime Minister, and the Head of the Price Steering Committee to ensure timely information for price management.
At the same time, ministries, branches and localities continue to implement the roadmap for adjusting public service prices according to the market roadmap and the goods managed by the State according to market principles, proactively calculate and prepare price options and roadmaps for adjusting prices of goods to promptly adjust according to their authority or report to competent authorities for consideration and decision on the level and timing of adjustment in accordance with developments and market price levels, ensuring the goal of controlling inflation. Strengthen the effective implementation and supervision of price declaration and posting measures; publicize price information; organize inspections and checks on compliance with price laws, strictly handle violations of price laws.
Along with that, it is necessary to continue implementing a proactive, flexible, timely, effective monetary policy, in a synchronous, close, and harmonious coordination with fiscal policy and other macroeconomic policies; to manage credit, interest rates, and exchange rates in a synchronous, harmonious, flexible, reasonable, and effective manner according to common goals, creating favorable conditions for businesses and people to stabilize production and business activities, contributing to controlling inflation, stabilizing the macro economy, stabilizing the monetary and foreign exchange markets, controlling core inflation, creating a basis for controlling general inflation. Continue to research, consider promulgating under authority or submitting to competent authorities to promulgate policies on exemption, reduction, and extension of taxes, fees, land use fees, etc. to remove difficulties for production and business, and promote growth.
The Ministry of Finance, ministries and agencies, according to their assigned functions and tasks, shall urgently complete legal documents guiding the Law on Prices, promptly report to competent authorities for promulgation and promulgate according to their authority, ensuring synchronous, effective and efficient implementation, leaving no legal gaps when the Law takes effect from July 1, 2024.
The State Bank of Vietnam strictly implements the direction of the Government and Government leaders in relevant Official Dispatches, Directives and documents, proactively and promptly implements measures, tools and solutions to manage the gold market according to its authority and legal provisions; continues to research, review, assess the impact and summarize the implementation of Decree No. 24/2012/ND-CP to propose appropriate amendments and supplements, ensuring compliance with the practical situation and economic developments in the country, region and internationally, enhancing the State's role in managing and regulating the gold market in accordance with regulations, ensuring economic security, national financial and monetary security and social order and safety.
Continue to promote information and propaganda work, ensure objectivity, timeliness, publicity and transparency of information on prices and price management of the Government, the Price Management Steering Committee, especially price developments of important materials and essential goods related to production and people's lives, promptly convey to businesses and people, stabilize consumer and business psychology and control inflation expectations...
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