[NEWS] – Impressions to help Vietnam curb inflation in 2022

In the context of a volatile 2022, Vietnam’s economy, although not immune to adverse impacts, has shown recovery and overcome the negative effects of the Covid-19 pandemic, and is gradually regaining momentum. growth thanks to timely and effective policies.

The year 2022 is full of turbulence, the world is facing great challenges due to the multidimensional impact and consequences of the Covid-19 pandemic; geopolitical tensions and military conflicts continue to develop complicatedly; supply chain disruption, high inflation in many countries; Non-traditional security issues and climate change continue to be complicated and intense…

Domestically, the disbursement of public investment capital is considered to be too slow compared to the requirement; The fight against corruption has brought positive results, but it is also accompanied by a situation of "afraid to do wrong", causing stagnation and congestion of critical projects...

Although Vietnamese private enterprises have recovered, they are still not really healthy, their share of the GDP is just under 10%. The real estate market is considered one of the pillars of a quiet and recessionary economy... Stock and financial markets are volatile and unstable...

On average, in the first 11 months of 2022, core inflation increased by 2.38% over the same period in 2021, lower than the general moderate CPI (up 3.02%), which reflects consumer price fluctuations mainly due to food and food prices and gasoline and oil prices.

What has Vietnam done to curb inflation?

1. Implement solution group synchronously

The Government has implemented synchronously several groups of solutions: Reducing the impact of push costs, promoting the supply of goods, doing well the propaganda and advocacy work, and avoiding the psychological impact of expectations.

In Vietnam, a large proportion of consumer goods is in the group of food and food products, accounting for about 40% of the basket of goods. So when the world gasoline price spiked, there were signs of inflation increasing, the Government took the initiative to reduce gasoline prices, and reduce value-added tax (VAT) for some groups of goods and services from 10% to 10%. 8%; reduce the collection of 37 fees and charges in the first 6 months of 2022…

Thereby reducing production costs and transportation costs, ensuring the supply of essential food and food items, meeting people’s needs, and stabilizing prices.

2. Adjusting the exchange rate band

The State Bank has adjusted the exchange rate band from ±3% to ±5% (effective from October 17, 2022) in order to solve the difficulties in foreign currency supply and demand in the current context.

The adjustment of the exchange rate band by the State Bank is appropriate in the context of high inflation and the adjustment of the exchange rate to limit the sale of foreign currencies to the market, and balance supply and demand to have more room. implement other monetary solutions to stabilize the macro-economy and control inflation.

3. Tighten real estate credit

The policy of tightening real estate credit can be considered a safe choice for the goal of controlling inflation. The control of credit growth by the State Bank is a strong message about the direction of reducing credit capital flows into the real estate sector, helping to purify and limit speculative groups, buying and selling again and again. access to capital, while still encouraging disbursement for businesses to develop real projects and investors with real needs, to invest in low-risk real estate products.

4. Support policies for businesses

In order to support enterprises to expand their business and restore production, the Government directed the banking and financial sectors to take measures to remove difficulties and bottlenecks: correcting inappropriate regulations and cutting administrative procedures. main; promote disbursement of public investment capital, national target programs, and recovery programs; exempt or reduction of fees and charges for enterprises; study the reasonable loosening of credit room, to both ensure the safety of the system, stabilize the macro economy, and promote growth.

The Government has implemented a series of policies to support and strengthen the resilience of businesses, including policies on tax and fee exemption and reduction, etc. All efforts have contributed to economic growth reaching above 8%, inflation was controlled according to the set target; exports increased by more than 13.4%, trade surplus of goods increased by 10.6 billion USD, disbursed foreign investment capital increased by 15.1% over the same period last year, industrial production index increased by 8, 6%, of which the manufacturing industry increased by 8.9%; Domestic consumption increased sharply, total retail sales of goods and services increased by 17.5%...

These indicators show that consumption has recovered after the pandemic, and the business sector has responded effectively to the opportunities that have opened up, quickly ramping up production and exports. The rapid increase in foreign investment disbursement also shows foreign investors’ confidence in Vietnam’s economic prospects in the coming years.

Source: Collector