Anti-inflationary measures effectiveVietnam is on track to bring inflation under control this year, rising just 6% over 2012 – a record low in the past 10 years, according to the General Statistics Office (GSO) leader. In an interview granted to Vietnam News Agency, GSO Director General Nguyen Bich Lam said the government has succeeded in reining in runaway inflation in the context of difficult times. There was growing concern about the recurrence of high inflation early this year when the prices of medical and education services, petrol, electricity, and gas would be adjusted as scheduled.  In fact, 17 provinces and cities hiked the prices of medicine and medical services by 19.5% against 2012, causing the national CPI to edge up 1.1% overall. Against this backdrop, it is vital that inflation was kept in check, with the rate hovering around 6%. Lam attributed the low CPI to Above all, he appreciated the government’s impressive performance, taking prompt action to control inflation. Ministries, agencies and localities put the government’s anti-inflationary measures in place, by keeping a tight grip on market prices, ensuring the market law of supply and demand, and combating trade fraudulence. The State Bank of Lam said the dollarization of the economy was no longer a major headache for the banking sector. The gap between global and domestic gold prices was narrowed due to saturated demands within the public. He also gave reasons easing worries that the national economy has not yet bottomed out due to the low CPI and excess industrial inventories. The national economy is recovering, he said, with the GDP growth increasing on a quarterly basis, from 4.76% in Q1 to 5% in Q2, 5.54% in Q3 and estimated 5.91% in Q4. Industrial production is picking up, with the number of newly established businesses in the past 11 months rising 9.5% compared to the same period last year. In addition, 12,700 businesses resumed operation after a period of suspension. 11-month investment capital rose 6.8% and credit growth also edged up 7.54%. The 17.8% import rise means industrial production is recovering. However, in Vietnam Lam said low inflation is too fragile to be controlled and high inflation is likely to edge up in 2014. The National Assembly approved the government’s proposal to raise the 2014 budget deficit to 5.3% and issue more government bonds that will eventually increase the amount of cash in circulation. The government will go ahead with its roadmap for healthcare, education, electricity and water supply price adjustments. VOV |
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