PM pushes for commodity price cuts

April 22, 2020 - 08:10

Việt Nam was in a position to hold inflation below 4 per cent this year, according to Prime Minister Nguyễn Xuân Phúc.

Prime Minister Nguyễn Xuân Phúc chairs a meeting with leaders from ministries to discuss solutions for price reductions in Hà Nội. — Photo

 HÀ NỘI — Việt Nam was in a position to hold inflation below 4 per cent this year, according to Prime Minister Nguyễn Xuân Phúc.

The PM was speaking at a working session of the National Steering Committee on Price Management attended by leaders from various ministries in Hà Nội on Tuesday.

To reach this target, Phúc asked ministries to implement effective solutions to reduce the cost of commodities, especially rice, pork, electricity and water.

At the meeting, leaders discussed solutions to deal with the impacts of COVID-19, which are affecting economies around the world.

Phúc said State management was needed to control prices in accordance with the law to fight speculation and price gauging.

“Slack management is a mistake,” Phúc said.

“If prices rise, people will be affected. So we must look at good growth and stable prices to ensure people’s living standards, especially during these difficulties," he stressed.

The Government leader assigned the ministries of agriculture and rural development (MARD) and industry and trade (MoIT), the Government Office and the State Bank of Việt Nam and other agencies to submit concrete solutions, including strict sanctions for violations that slowed development.

Phúc wanted ministries to carry out solutions systematically and effectively to reduce the price of live pigs to VNĐ60,000 (US$2.6) per kilo.

A report by the MoIT showed that the price of live pig reached VNĐ73,000-78,000 per kilo early this month, making the price of pork high VNĐ130,000-150,000 per kilo in markets. The prices have currently increased to VNĐ80,000-90,000 per kilo of live pig and VNĐ145,000-165,000 per kilo of pork.

Phúc said the current prices were too high.

“We need to ensure the benefits of the husbandry, processing and distribution sectors, as well as consumers. If prices are manipulated or speculation and profiteering are detected, we must deal with them,” he added.

In terms of rice, the Prime Minister emphasised the importance of rice exports while ensuring food security and farmers' rights.

He also instructed the MoIT and finance ministry to monitor changes in crude oil prices, giving specific scenarios and concrete price management plans, in combination with the efficient use of the price stabilisation fund.

Meanwhile, ministries and other agencies will give instructions to reduce the prices of materials, medical equipment, textbooks, transportation services, building materials and essential goods to help ease problems and stabilise market prices. — VNS