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Finance Minister Warns of Inflationary Pressure as April CPI Rises 5.46%
๐Ÿ‡ป๐Ÿ‡ณ Vietnam /Economy & Trade

Finance Minister Warns of Inflationary Pressure as April CPI Rises 5.46%

From Tuแป•i Trแบป · (9m ago) Vietnamese Critical tone

Translated from Vietnamese, summarized and contextualized by DistantNews.

TLDR

  • Vietnam's CPI rose to 5.46% in April, driven by increased fuel prices and their ripple effects on transportation, food, and construction materials.
  • Despite global price fluctuations, domestic fuel prices decreased due to government tax reductions, though they remain higher year-over-year.
  • The Ministry of Finance urges close monitoring of inflation, recommending measures to ensure fuel and electricity supply and manage material costs.

Vietnam's economy is facing mounting inflationary pressures, with the Consumer Price Index (CPI) climbing to 5.46% in April, a notable increase from March's 4.65%. This surge is largely attributed to the escalating costs of fuel, which have triggered a cascade effect on prices for transportation, food, and essential construction materials. The Ministry of Finance, led by Minister Ngรด Vฤƒn Tuแบฅn, highlighted these concerns during the government's April session, emphasizing the need for renewed thinking and enhanced execution capabilities.

CPI increased due to the price of gasoline and oil, and the chain reaction.

โ€” Ministry of FinanceExplaining the primary drivers behind the CPI increase in April.

While international organizations have offered positive assessments of Vietnam's socio-economic performance in the first four months of the year, Minister Tuแบฅn pointed out that growth in many sectors has not met projections. The global price of oil, averaging above $110 per barrel in April, continues to exert upward pressure on domestic prices, even as the Vietnamese government implemented tax reductions on petroleum products. These reductions led to a decrease of 3-20.5% in fuel prices compared to late March, yet they remain elevated compared to the same period last year.

The Ministry of Finance recommends that the Government direct the Ministry of Industry and Trade to ensure sufficient supply of gasoline and oil at competitive prices, and to ensure sufficient electricity during the peak heat season to serve the goal of double-digit growth.

โ€” Ministry of FinanceProposing measures to manage fuel and electricity supply to control inflation and support growth.

Looking ahead, the Ministry of Finance has called for vigilant monitoring of inflation. Factors such as the persistent rise in global oil prices, anticipated increases in electricity tariffs during the peak summer season, and the scheduled adjustments in healthcare and education service costs are expected to further fuel inflation. The ministry has recommended that the government direct the Ministry of Industry and Trade to secure competitive fuel prices and ensure sufficient electricity supply, particularly during the hot season, to support economic growth targets. Additionally, guidance on adjusting construction contracts due to volatile material prices and the need for local authorities to finalize quarry plans are crucial steps to stabilize the economy.

It is necessary to focus on supporting businesses to complete investment procedures.

โ€” Ministry of FinanceHighlighting the importance of streamlining investment processes for businesses.
DistantNews Editorial

Originally published by Tuแป•i Trแบป in Vietnamese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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