Friday, December 14, 2018 2:23:00 PM - Markets open
VN-INDEX 952.25 -8.00/-0.83%
HNX-INDEX 106.62 -0.68/-0.64%
UPCOM-INDEX 53.43 -0.44/-0.82%
Fuel prices set to put pressure on inflation
VietnamPlus - 10/11/2018 3:21:01 PM
 (0 ratings. You must sign in to rate.)
 Increases in environmental protection taxes on petroleum from the beginning of next year would weigh heavily on inflation, especially as fuel prices rise worldwide, according to the Vietnam Institute For Economic and Policy Research (VEPR).
 
Nguyen Duc Thanh, VEPR’s Director, said at the launching of the report about the Vietnamese macro-economy in Hanoi on October 10 that inflation in 2019 would exceed the 4 percent target set in recent years.
 
“The Government should have strong measures to control inflation next year,” Thanh said.
 
With environmental protection taxes on petroleum to be raised from 3,000 VND to 4,000 VND per litre from next year, VEPR estimated this increase might push up inflation by 1.6 percentage points within 12 months.
 
“The pressure on inflation next year requires the State Bank of Vietnam to be cautious with money supply and credit policies,” Thanh added.
 
Previously, the National Assembly Finance and Budget Committee, however, estimated that tax hikes on petroleum would push up CPI in 2019 by 0.07-0.09 percent.
 
For inflation this year, Thanh said: “The Government’s target of keeping inflation under 4 percent this year is within reach if there are no big fuel price shocks in the quarter.”
 
VEPR projected inflation to be at 4.25 percent in the last quarter of this year.
 
Deputy Prime Minister Vuong Dinh Hue at a meeting of the Price Management Steering Committee at the end of September asked efforts to keep inflation at 3.7-3.95 percent in 2018, urging close watch on global prices updates, especially oil prices and the impacts of unpredictable weather.
 
Hue also asked relevant ministries to plan for 2019 with the goal of controlling inflation at around 4 percent.
 
The National Financial and Monetary Policy Advisory Council proposed that the inflation target should be set at around 4 percent in 2019 rather than below 4 percent.
 
Thanh said economic growth will be impressive, adding that VEPR predict it to be at 6.85 percent for 2018, far exceeding the National Assembly’s target at 6.5-6.7 percent.
 
“However, in the context of escalating trade war and rising protectionism, the Vietnamese economy might face uncertainty from shocks in the global markets,” he said.
 
The Fed’s interest rate hikes would create pressure on the domestic currency and exchange rates, he said. While, the use of foreign currency reserve to stability exchange rates was only short-term and might bring risks, given the thin reserve of Vietnam, Thanh said.  
 
“The US - China trade war is an opportunity for Vietnam to speed up reform and enhance resilience to global risks, including reducing budget deficit, increasing trust surplus, improving business climate and simplifying administrative procedures,” Thanh said.-VNS/VNA
 
Read original article here
 
Newer News
12/12 Vietnam’s growth rate at nearly 6.8 percent this year: WB
10/12 Shrimp by-products should be used
10/12 Việt Nam an FDI magnet in Southeast Asia: experts
07/12 Agriculture cooperation prospects for Vietnam, Argentina
07/12 Vietnam, Belarus agree to enhance trade ties
06/12 Vietnam, Italy seek effective economic cooperation
05/12 Vietnam spends 1.57 billion USD on fruit, vegetables in 11 months
05/12 VN proactively integrates into global economy: Deputy PM
04/12 Việt Nam considered gateway for RoK to enter ASEAN: forum
04/12 Vietnam, China deepen agricultural cooperation
Older News
10/10 Dong Nai revokes licences of over 170 FDI projects
10/10 Vietnam earns 3.2 billion USD from auto accessories exports
10/10 Mekong Delta provinces attract more foreign investment
09/10 Seafood exports likely to rake in $9b this year
08/10 Standard Chartered: Vietnam - fastest growing ASEAN economy
05/10 Đồng Nai attracts nearly US$1.3 billion in FDI in nine months
03/10 Deputy PM: Vietnam sees stable, rapid economic growth
02/10 HCM City must pick up economic pace
02/10 Vietnam’s trade surplus widens to 5.39 billion USD in 9 months
28/09 Nine-month GDP growth highest in eight years
 
Newsletter Signup
Top Stories
VN Index to rise amid volatility, weak liquidity
VN stocks continue rallying
VN manufacturing PMI hits 22-month high in March
CPI goes up 4.96 percent year-on-year in first quarter
Slight rise in February CPI
Market Update
Last updated at 2:35:19 PM
VN-INDEX 952.25 -8.00/-0.83%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.