Inflation “boiling”: Minister Ho Duc Phuc revealed the “fundamental” solution, the Governor together “divided the fire”

At the Q&A session with Finance Minister Ho Duc Phuc this morning (June 8), delegate Hoang Van Cuong (from Hanoi) said that world inflation is increasing very rapidly. while Vietnam imports goods and inputs very large.

“Importing goods is also importing inflation. In addition, Vietnam is disbursing the economic recovery support package, which means adding more money to the economy, adding inflationary pressure. The minister has a solution. What will curb inflation in the coming time?”, Mr. Cuong asked.

Inflation pressure in Vietnam is lower than in the world

Citing data from the Financial Industry Command, said that currently the world inflation is 8.3%, Europe 8%, Singapore 5.4%… and Vietnam is 2.25%. The economy is integrating deeply with the world, raw materials cannot be produced, and it depends on foreign countries. The price of foreign raw materials increases, of course, the price of domestic materials will also go up, leading to inflation, such as gasoline, steel, fertilizer, etc. Therefore, Minister Ho Duc Phuc said that inflation Inflation is a very hot issue and it is necessary to focus on fighting inflation to ensure development and social security.

The good news is that Vietnam is self-sufficient in food, which accounts for 40% of the basket of goods, so inflation pressure is less – according to Minister Ho Duc Phuc.

“This is also a golden time for us to break through and develop. If we take advantage of this opportunity, we will definitely bounce back. Inflation countries are high, but Vietnam is late and has the autonomy to consume domestically.” Minister Ho Duc Phuc commented.

Regarding the solution, the Commander of the Finance sector said that the monetary solution is to collect money in circulation, by means of interest rate measures, to issue other tools, etc. The Governor of the State Bank will explain. more clearly on this matter.

Regarding the fiscal, according to the Minister, it is necessary to implement the fiscal policy while reducing taxes, ensuring social security, building infrastructure, saving investment and recurrent expenditure; tight price management; comply with the Law of Price.

In addition, it is necessary to promote the development of enterprises and business households, ensure social security, restructure the economy, break through into infrastructure, and transform digitally.

“The core of the economy is not only in fiscal and monetary policies, but basically these policies must be directed towards businesses and people. People and businesses do business effectively, have incomes, increase GDP, If income increases, jobs are created, and a good life is maintained, fiscal, monetary and stock market policies will be maintained,” stressed the Finance Minister.

Therefore, all administrative procedures, digital transformation, scientific and industrial progress, capital must be allocated to people and businesses for effective production and business “is the most fundamental solution to combat inflation.” the best”.

Governor Nguyen Thi Hong “divided the fire” with the commander of the Ministry of Finance

Explaining to the Finance Minister the delegates’ questions about inflation, Governor Nguyen Thi Hong acknowledged that controlling inflation is a global problem today.

In Vietnam, inflation is still under control, increasing by 2.25% in the first months of the year. Through analysis, this price increase is mainly due to the increase in world commodity prices.

From an operating perspective, the packages in the economic recovery program have not been disbursed yet. However, Governor Nguyen Thi Hong noted that in the coming time, when these solution packages are introduced, it will affect inflation.

Therefore, from now until the end of the year, it is necessary to closely monitor the disbursement progress of these packages, in order to come up with operational measures in line with reality. Especially in controlling inflation, it is still important to coordinate and combine monetary and fiscal policies, price control policies, and so on.

“We have a Price Management Steering Committee, through which we can analyze and evaluate inflation to have appropriate management,” Governor Nguyen Thi Hong added.

Related to the content governing the money market and associated with other segments of the financial market such as securities or capital markets. The first female governor of the banking industry said that the money market is one of the segments of the financial market and is mainly a short-term market and is managed and organized by the State Bank of Vietnam. .

In the past 5 months, the State Bank has also closely monitored developments and made appropriate liquidity adjustments to make monetary policies such as interest rate policy, exchange rate policy and monetary policy. in 5 months, the money market is quite stable. This is also one of the internationally rated points.

However, in the past 5 months, there have been developments in the stock market and corporate bond market. In this market, there are also many participants, in which the participants are credit institutions. As the state management agency for the activities of credit institutions, the State Bank also implements the direction of the Prime Minister to ensure that credit institutions comply with the law.

According to the Governor, banks are financial intermediaries, when credit institutions participate in this activity, the most important point is to control risks. Because, if credit institutions participate in these markets without controlling risks, then they will not be able to recover their investments. Thus, it will also be difficult to meet the payment needs of depositors.