Nguyen Loc An, deputy director of the Domestic Market Department under the Ministry of Industry and Trade, stated that Vietnamese manufacturers should reduce cost of essential commodities to help curb inflation and ease the price hike during the last six months of this year.
An was speaking at a seminar entitled “Price Movement in the First Six Months of 2011 and Forecast Prices for the Last Six Months of the Year” in Hanoi on July 12.
He also said that the national economy will continue to face difficulty in the second half of the year, especially with the high inflation, trade deficits and high interest rates.
CPI has increased by 13.29 percent since the end of 2010. Last month the government decided that the CPI should increase by 15 percent maximum in 2011. Economic experts believe that it is very difficult to set a target for CPI. They also think that 17 percent CPI in 2011 will be a reality.
A representative of the Price Management Department under the Ministry of Finance said that relevant organizations must control inflation to reasonable levels by prudently handling monetary policies that support targets for economic growth.
In addition, to control essential product prices, the Ministry of Finance needs to cooperate with relevant authorities to keep a close watch on prices in and outside Vietnam.
Experts who attended the seminar blamed the CPI increase on several causes, such as: global petroleum prices, construction material costs, high rice prices, severe drought and the high cost of agriculture farming.