Prime Minister Lê Minh Hưng chairs the Government meeting on Wednesday, putting inflation control at the top of the agenda. — VNA/VNS Photo

HÀ NỘI — Curbing inflation will be the top priority for the rest of the year, Prime Minister Lê Minh Hưng said on Wednesday, warning that the benefits of rapid growth would not reach the wider economy or ordinary people unless prices were kept in check.

Hưng said at the Government’s regular monthly meeting that the Government remained committed to double-digit growth, but would focus on shoring up macroeconomic stability, above all by holding inflation to the target set by the National Assembly.

Official figures show consumer prices rose an average of 4.57 per cent in the first 10 months of the year, slightly above the target of around 4.5 per cent that lawmakers set for 2026.

To cushion the impact of global volatility on domestic prices, the Government lowered electricity prices by 2 per cent and cut the excise tax on gasoline to zero, with both measures effective November 1.

The tax cut, which runs through March 31, 2027, has reduced pump prices by between VNĐ1,575 and VNĐ1,804 (US$0.07) a litre and is expected to cost the State budget about VNĐ7.67 trillion ($298 million).

The Government leader acknowledged that fuel tax relief in place since the start of the year had already hit fiscal revenue hard.

"But to control inflation and keep prices and the macroeconomy stable, the State budget must share the burden with the economy, the public and businesses," he said.

So far, fiscal revenue has held up. The State collected nearly VNĐ2.45 quadrillion ($95 billion) in the first 10 months, 96.4 per cent of its full-year budget target, even after granting VNĐ366.6 trillion ($14 billion) in tax and fee exemptions, reductions and deferrals.

Land-related income accounted for only about 21 per cent of the total – a sign, the PM said, of the economy’s underlying strength.

Hưng ordered the Government’s price steering committee to work immediately with localities where inflation has outpaced the national average, particularly major cities. He told the Ministry of Finance to update its inflation scenarios, speed up value-added tax reform and propose assigning inflation targets to provinces and cities from 2027.

The State Bank of Vietnam was instructed to keep interest rates and the exchange rate stable while using more flexible tools to bring down lending rates, especially for small and medium-sized enterprises, exporters and priority sectors.

The ministries overseeing agriculture and construction were told to keep a close watch on food, building material and housing costs.

Reports presented at the meeting painted a picture of an economy still growing rapidly despite global headwinds.

Two-way trade topped $1 trillion for the first time, reaching $1.01 trillion in the first 10 months, and Việt Nam ran a trade surplus of more than $7.3 billion in October alone.

Foreign direct investment pledges jumped by 74 per cent to $54.85 billion, while disbursed FDI rose by more than 13 per cent to $24.08 billion. Việt Nam has also signed a free trade agreement with the four-nation European Free Trade Association, its 18th such pact.

Manufacturing grew by 13 per cent, retail sales rose by 13.5 per cent and foreign arrivals reached 19.54 million, or 78 per cent of the full-year target. The Government disbursed VNĐ720.5 trillion ($28 billion) in public investment, 75.4 per cent of the annual plan and nearly VNĐ230 trillion more than in the same period last year.

Still, the head of Government said disbursement remained slow for some key projects, and many localities had made little headway in reviving stalled projects and dealing with surplus public buildings and land left over from the last year's sweeping administrative restructuring.

By the end of October, 2,982 previously stalled projects with combined investment of nearly VNĐ2.2 quadrillion ($85 billion) had been unblocked and were back under way, 47 more than a month earlier.

Hưng directed officials to shift funds from slow-moving projects to those able to spend faster, with the aim of disbursing the entire public investment plan. He urged tight limits on new projects, particularly Government office buildings in provinces and cities, so that resources go to essential infrastructure, and pressed for quicker progress on key railway, expressway and airport projects.

To support growth, he called for steps to spur consumer spending and tourism ahead of the year-end and Lunar New Year holidays.

The Ministry of Industry and Trade was told to guarantee supplies of fuel and electricity, seek a fast-track revision of the national power development plan and submit a draft decree on fuel trading this month that would cut out middlemen to lower distribution costs.

The ministry should also press for the signing of a reciprocal trade agreement with the US, the PM said.

He asked the Ministry of Construction to lead a comprehensive review of the property market and propose ways to keep it from harming the broader economy and the financial system.

Việt Nam has 947 social housing projects under way, totalling nearly 911,000 homes, of which 55,600 had been completed by the end of October.

Among other directives, the Government leader called for stronger support for vulnerable groups, a stepped-up effort to recover and identify the remains of war dead and new boarding schools in border areas.

Other ministries were ordered to strip unnecessary intermediaries from the supply of drugs and medical equipment, tackle shortages of schools and teachers, and finalise special policies to boost tourism and attract talent. — VNS