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Stabilising the prices of essential commodities
Economic experts have forecast that the consumer price index (CPI) in July will fall by 1.5 percent compared to June as the Government’s measures to stabilize CPI and contain inflation have begun to take effect.
Important economic sectors are also implementing a number of measures to stabilize market prices.
CPI in June increased by 2.14 percent compared to May - the lowest growth in the first half of this year and the trade deficit in recent months dropped sharply from US$3.2 billion in March to US$1.3 billion in June.
The Government has stated that from now until the end of this year it will give priority to containing inflation and stabilizing the macro-economy to create a firm foundation for the next few years and ensure social security. To stabilize the prices of necessary commodities, the Prime Minister has directed relevant ministries to ensure petrol supplies under any circumstances. When any future changes happen, the Government will devise a suitable solution for curbing inflation.
The Ministry of Finance (MoF) is developing specific plans and a roadmap for coal prices in the future, including regulating the coal price for each big consumer.
Hoang Tho Xuan, head of the Domestic Market Policy Department under the Ministry of Industry and Trade (MOIT) said that the MoF and the MOIT are working with each other to devise a specific plan to control coal prices in the near future. They will regulate the price of coal for electricity, cement, paper and fertilizer production.
Economic experts have forecast that the prices of construction materials in July will remain stable thanks to abundant supplies. The Ministry of Construction (MoC) has liaised with businesses and the Cement Association to agree to manage cement prices on the open market.
Nguyen Quang Cung, head of the Construction Materials Department under the MoC said that to increase supplies of construction materials on the market, more cement plants will be put into operation in July.
Mr Cung said that the most important thing is to ensure a stable source of supply. This July, the Gianh River Cement Plant will be put into operation to provide more cement for the southern market. Enterprises are closely coordinating with each other to manage the construction materials market, from production to distribution. Cement agents will be warned or not be allowed to sign cement-selling contracts with plants if they are found to sell cement at prices higher than the listed prices. The ultimate goal is to harmonize the benefits for manufacturers, distributors and consumers.
Regarding steel, the government disapproves the raising of prices even though the Vietnam Steel Association has recently proposed adjusting steel prices in line with rising steel prices on the world market. Therefore, steel enterprises should try to reduce production costs and consider the situation carefully before they decide to raise steel prices.
Meanwhile, fertilizer businesses are taking a number of measures to stabilize the fertilizer market. Phan Dinh Duc, Director General of the PetroVietnam Nitrogenous Fertilizer and Chemicals Company (PVFCCo.), said that the price of fertilizer has gone up by 100-300 percent but nitrogenous fertilizer has increased by only 75 percent because his company’s products make up 40 percent of the market and his company has exercised an appropriate price policy.
“We are developing a direct distribution system comprising of four companies in the Southeastern, Southwestern, Central Highland and Northern regions,” Mr Duc elaborated on his company’s efforts to stabilize the prices of fertilizers this year. “Such a system will channel our commodities to farmers quicker, helping to reduce costs. In the long term, we are seeking input from gas and oil abroad and then will invest and build fertilizer factories overseas.”
VOV
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