The Prime Minister warns about high inflation and possible hazards

DNHN - On the afternoon of July 30, Prime Minister Pham Minh Chinh presided over a debate on maintaining macroeconomic stability, controlling inflation, ensuring important economic balances, and promoting quick recovery and sustainable growth at the Government headquarters.

Deputy Prime Minister Le Minh Khai, Minister of Finance Ho Duc Phoc, Governor of the State Bank Nguyen Thi Hong, Minister and Chairman of the Government Office Tran Van Son, and Minister of Finance were also present. Tran Hong Ha, directors of departments, ministries, branches, and central agencies, many local and foreign professionals and scientists, and representatives of several international organizations.

After hearing the Ministry of Planning and Investment's report, both local and international specialists offered their viewpoints and agreed to appraise the fast-changing, complex, unpredictable, and problem-filled global scenario. unusual, unexpected, and severely affecting the global economy and each nation in several ways. The position is becoming more challenging, with more obstacles than benefits and possibilities.

In this environment, Vietnam has several obstacles, problems, and significant pressure on its leadership and administration, particularly in terms of macroeconomic stability, inflation control, the guarantee of economic balances, etc. for the economy at large. The size of Vietnam's economy is still modest, tiny external influences may have enormous effects on the domestic economy, and the country's resilience and competitiveness are still restricted.

To achieve the goals of stabilizing the macroeconomy, controlling inflation, and quickly reviving the economy after the pandemic, experts praised the government's recent policies and solutions, which praised for being proactive, calm, but not subjective, reacting to policies promptly, having the right solutions, and succeeding in administration. Numerous international organizations see Vietnam as one of the few nations that will experience quick recovery and high development shortly.

Numerous policy suggestions were given to Vietnam to address both current and long-term difficulties and to always be prepared for the reappearance of the COVID-19 outbreak.

Prime Minister Pham Minh Chinh noted during the conversation that despite the socioeconomic situation's accomplishments and outcomes, there are still many deficiencies, restrictions, problems, and obstacles.

The economic momentum is positive, but the underlying conditions for sustained and sustainable development remain very challenging. Inflationary pressure is substantial and perhaps dangerous. 

The business climate has not seen a breakthrough. The stock market, corporate bond market, and real estate market are opaque, unstable, and unsustainable. The economy of Vietnam is in transition with internal issues.

"These deficiencies and restrictions include objective and subjective causes, with the Prime Minister highlighting the constraints of human resources in addition to the most fundamental factors. We identify the human as the focus, topic, aim, incentive, and resource for growth; we maximize the Vietnamese population's intellect, abilities, traits, and ethics "the Prime Minister said.

Analyzing some practical experiences, the Prime Minister emphasized the need to be very calm, courageous, maintain solidarity, promote the strength of the nation and the strength of the times, be flexible and creative with a vision and breakthrough thinking, based on strictly observing the leadership of the Party, the companion and supervision of the National Assembly, along with the participation of the entire political system and the support of the people, the supplement to the Constitution of the People's Republic of China.

The Prime Minister stated: “The point of view to guide and direct macroeconomic management in the future must be objective, firmly grasp the developments of the international and domestic situation, strengthen the analytical and forecasting capacity and discipline, discipline in directing and operating, utilizing proactively, flexibly, and closely and synchronously coordinating policy instruments to prioritize inflation control, macroeconomic stability, and enactment of structural reforms.”

This is a priority objective that is both urgent and strategic, as well as a vital responsibility for the remainder of 2022 and the subsequent years.

The Prime Minister emphasized: To achieve this, we must maintain the very important foundations of firmly defending independence, sovereignty, unity, and territorial integrity; maintaining political stability, ensuring social order, security, safety, and the safety of the people; implementing the foreign policy of independence, self-reliance, diversification, and multilateralization, being a good friend, a reliable partner, and a responsible member of the international community; and constructing a strong economy.

The Prime Minister noted that the monetary policy is sensible, proactive, flexible, prompt, and effective in close cooperation and synchronization with the fiscal policy and other financial measures. Other measures to contain inflation, stabilize the macroeconomy, encourage production and business growth, and stabilize the macroeconomy.

Continue to implement a reasonable expansionary fiscal policy, ensure efficiency, increase revenue, reduce spending, and adjust policy instruments appropriately to both support aggregate demand and promote recovery and socio-economic development, thereby contributing to inflation control, macroeconomic stability, and national financial security.

The Prime Minister presented an example to illustrate the need of being proactive, careful, adaptable, innovative, calm, effective, close to the issue and appropriate to the country's conditions and circumstances. In the context of inflation, monetary policy must be more careful, proactive, flexible, prompt, and effective; if the global market is limited, it is vital to boost the local market and to use fiscal instruments such as taxes, fees, and charges, public investment, etc.

Some issues need concentration and concentration, such as public investment, and some require expansion, such as social security. There are both short-term challenges, such as pricing, and long-term ones, such as human resources and strategic infrastructure.

In addition, strengthening the management, inspection, and supervision of the market, prices, and operating very flexibly, particularly for strategic and essential commodities for production and life, such as gasoline, oil, food, foodstuffs, and the upcoming goods and services related to the upcoming new school year...; enhancing the prevention and combat of smuggling and commercial fraud.

Promote the growth of the home market while diversifying foreign markets, promoting commerce, establishing Vietnamese brands, and promoting sustainable exports.

Continue to evaluate and improve institutions, methods, and policies to clear, mobilize, and use resources efficiently to achieve speedy recovery and sustainable growth.

Promoting production and business growth, accelerating economic restructuring, innovating growth models, increasing the application of science and technology, promoting digital transformation, developing digital economy, and green economy, adapting to climate change, and enhancing the economy's competitiveness and resilience.

Enhance the capability for macroeconomic policy direction, coordination, and coordination to guarantee synchronization, efficiency, and adaptability across policy tools.

Paying more attention to the development of cultural and social fields, ensuring social security and the lives of the people, especially the disadvantaged, recognizing culture as the spiritual foundation of society, the strength of the endogenous society, and the driving force for national development and national defence; bolstering national defence and security, and protecting independence and sovereignty with vigour. 

To intensify the prevention and battle against corruption and negativity; to bolster objective, transparent, and timely communication; and to instil and foster trust in society.

In addition, several delegates noted that "in the face of peril," the Prime Minister underlined the need for stronger resolve and greater attempts to tackle many issues that would not have received sufficient consideration in a normal setting.

By:  Inspector Newspaper