Inflation under control in Vietnam, experts claim

Dr. Nguyen Duc Do of the Institute of Economics and Finance predicted manageable inflation in 2024 due to slow growth in major economies like the US and China.

Amid a forecast of sluggish global economic growth, exports from Vietnam are projected to grow modestly.

Even if the GDP growth reaches 6 per cent as planned for 2024 or the average of 4.64 per cent recorded from 2020-2024, the economy is unlikely to operate at full capacity, helping keep inflation in check at around 3 per cent - 3.5 per cent, below the National Assembly’s target of 4 per cent - 4.5 per cent.

Dr. Do emphasised the effectiveness of State Bank of Vietnam’s anti-inflation policies over the past decade in mitigating inflationary pressures. However, maintaining this control requires close monitoring of the global economic landscape, especially major economies.

Dr. Do suggested prioritising the balance of supply and demand in the market to stabilise domestic prices.

Dr. Vu Dinh Anh, another prominent economist, noted Vietnam’s success in keeping the average consumer price index (CPI) at 3.25 per cent by the end of 2023 while adding even excluding fuel and food, core inflation would still be above 4 per cent.

Dr. Anh warned of potential inflationary risks stemming from public investment disbursement and credit expansion in the coming year.

To sustain control over inflation in 2024, economic experts recommend vigilant monitoring of monetary inflation factors and timely responses from the government, ministries, sectors, and localities.

This includes closely tracking public investment disbursements and credit increases, ensuring economic stability amidst evolving global conditions.

Fibre2Fashion News Desk (DR)