Flexible collaboration to control inflation in 2017

	CPI in December 2016 increased by 4.74%
	Enhance the management and stability of market prices for the end of 2016 and Lunar New Year 2017
	High risk of inflation upsurge

The pricing operation in 2017 should be carried out closely and coordinated methodically from the beginning of the year. Photo: Phan Thu.

On 10 January 2017, the Steering Committee of pricing operation advised the conclusion of the Deputy Prime Minister, Vuong Dinh Hue, Head of the Steering Committee of pricing operation at the meeting of the Steering Committee of pricing operation on 22 December, 2016.

The Deputy Prime Minister commended that the Ministry of Finance and standing agency of the Steering Committee which had a high sense of responsibility in deploying the measures for pricing operation; and the assistance group which actively proposed the meeting plan, forecasted and made the operating scenario to propose appropriate measures submitted to the Head of the Steering Committee for directions and discussion at the meeting of the Steering Committee.

Thereby, the pricing operation in 2016 under Government direction achieved significant results in controlling inflation under 5% in accordance with the target set, contributing to macroeconomic stability.

Entering 2017, the National Assembly has set a target of average consumer price growth of about 4% per year. According to the Deputy Prime Minister, the implementation of pricing operation task and control of inflation in 2017 will be more difficult than in 2016.

The reason is that there are a lot of predictors putting pressures on the price plan such as the recovery trends of prices of petrol and oil and the prices of essential commodities in the world market, the pricing adjustment for important and essential items (electricity, health care services and education) is consistent with the market roadmap; pressures on the exchange rate and risks of climate change and natural disasters.

The transfer of service groups from fee into price valuated by the State under the Law on Fees and Charges and Decree No. 149/2016 / ND-CP dated 11 November, 2016 amending and supplementing some articles of Government Decree No. 177/2013/ND-CP dated 14 November 2013 detailing and guiding the implementation of some articles of the Law on prices, the calculation of accurate and full costs for some services not being supported by the State budget will cause a certain impact on the price plan.

On the other hand, the pricing operation must also support the economic growth. Therefore, the pricing operation in 2017 needs to be carried out closely and coordinated methodically from the beginning of the year.

The Deputy Prime Minister requested ministries, departments and localities to continue to display their responsibilities and coordinate flexibly to control inflation under the target, in which there needs focus on:

Specifically, the Ministry of Industry and Trade strictly observes the performance of world petrol and oil prices, operates the domestic oil price reasonably in combination with the flexible use of the petrol and oil pricing stabilility fund as the basis for the ministries and departments to operate the prices of other items within its jurisdiction; coordinates with the Ministry of Finance to urgently submit to the Government to amend Decree No. 83/2014/ND-CP on petrol and oil trading; and submits to the Prime Minister the price frame of the average retail price of electricity on the basis of input and output parameters of production and business activities to encourage savings and attract investment, and considers the time to adjust the electricity price.

For the pricing management of milk for children under age 6, the Ministry of Industry and Trade issued documents requesting dairy enterprises to strictly implement the price list and market stability, especially during Lunar New Year 2017.

The Ministry of Health Affairs continues to implement the roadmap of price adjustment for health care services paid by the health insurance fund for the remaining localities under the provisions in Joint Circular No. 37/2015/TTLT BYT BTC regulating the prices of health care services under health insurance between the hospitals at the same level in the country; and promulgates early a Circular regulating the maximum price of health care services out of the payment scope of the health insurance fund, implemented in 2017.

The ministry must also tightly cooperate with the Ministry of Finance and the General Department of Statistics and the State Bank of Vietnam to calculate the appropriate time and level adjustment, ensuring the target of inflation control.

The Ministry of Education and Training coordinates with the Ministry of Finance to strengthen strict control of prices of educational materials; coordinates with the General Department of Statistics and the Ministry of Finance to evaluate the adjustment of educational service prices of public universities self-ensuring the recurrent expenditures and investment expenditures in 2017.

The Ministry of Transport coordinates with the Ministry of Finance to quickly make a final accounting and calculate the financial plans for projects using BOT capital, prioritize the reduction of fees other than the time of capital recovery, try to reduce equally for all consumers to enjoy the same priority; enhance multi-modal transportation to reduce freight charges and strictly control service prices at airports.

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The State Bank of Vietnam operates to maintain the stability of the interest plan, and flexibly operates the exchange rate and strives to maintain the core inflation within 2%.