Vietnam targets to control consumer price index below the two-digit level and the economic growth rate in 2008, said Finance Minister Vu Van Ninh in an interview with Vietnam Economic Times.
This means that all sectors, industries and localities will have to make efforts to curb price hikes, he said.
According to the General Statistics Office (GSO), the CPI in November surged 10.01 per cent on year, surpassing the economic growth estimated at 8.5 per cent for this year.
“It is very difficult to rein in CPI below GDP growth because the global increase of commodities prices put impacts on many countries, including Vietnam,” Ninh explained.
He took China for an example, which has to revise its inflation forecast to 6.5 per cent this year, in stead of 4.5 per cent as the estimation earlier this year.
Meanwhile, imports of China account for only 29.8 per cent of its GDP whilst that makes up to 80 per cent of Vietnam’s GDP, Ninh said.
“If we do not import input materials and fuels, not attract foreign investment, we will lower economic growth.”
The economic expansion of 8.5 per cent is the real growth, which deducts price devaluation, the Finance Minister said.
Ninh revealed that the World Bank chairman told him Vietnam had problems in prices, but it was still not risky for the economy.
In coming years, Vietnam will apply international standards for CPI calculation, he said. “the Prime Minister has instructed the GSO to calculate CPI in line with international practices”. (Vietnam Economic Times)
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