Prime Minister calls for price freeze amid pay rises

Vietnam Prime Minister Pham Minh Chinh hosted a regular monthly government meeting on the morning of May 4th, during which various significant matters were discussed.

Efforts increase in the face of challenges

In his concluding remarks, Prime Minister Pham Minh Chinh acknowledged the existence of shortcomings and difficulties in socio-economic development. He cited a high number of enterprises withdrawing from the market and the real estate market experiencing initial stabilization but facing unresolved difficulties and obstacles.

Additionally, bad debts are on the rise; the deployment of a 120,000 billion VND credit package for social housing remains slow; and 32,000 billion VND of public investment capital has yet to be allocated.

Prime Minister Pham Minh Chinh. Photo: NHẬT BẮC

In assessing the subjective causes of the aforementioned shortcomings, the Prime Minister emphasized the continued weakness in legal and policy enforcement; and a low level of self-reliance and self-sufficiency among certain agencies and units.

Furthermore, some cadres and civil servants lack the required capacity and sense of responsibility; decentralization and delegation of authority in certain areas are still encountering difficulties; and a number of cadres and civil servants are hesitant to act due to fear of making mistakes or taking responsibility.

The Prime Minister stressed the importance of adhering to certain guiding principles in the upcoming period, including the unwavering determination to overcome difficulties, to transform challenges into opportunities, and to make the impossible possible.

He also called for focused efforts to remove obstacles, stimulate production and business activities, and create jobs and livelihoods for the people.

In conjunction with these efforts, the government will promote decentralization, delegation of authority, and resource allocation, while enhancing implementation capacity alongside strengthening inspection, supervision, and monitoring. Timely action will be taken to resolve bottlenecks, difficulties, and obstacles, with the focus on addressing issues within one’s authority, avoiding dependency, and promptly proposing and reporting on matters beyond one’s authority.

No sudden price increases

In addition to the specific tasks assigned to ministries, localities, and agencies, the Prime Minister also directed that the government coordinate with relevant agencies to ensure thorough preparation for the upcoming Central Committee meeting and National Assembly session, and identified 15 groups of key tasks and solutions.

The government holds its monthly meeting for April, chaired by Prime Minister Pham Minh Chinh. Photo: NHẬT BẮC

Regarding macroeconomic management, the Prime Minister emphasized the need for continued proactive, flexible, timely, and effective monetary policy management; and for close coordination between monetary policy and a reasonable, focused, and prioritized expansionary fiscal policy.

He advised against abrupt policy changes and stressed the need for a more proactive fiscal policy, including increased revenue collection, reduced spending, and the application of electronic invoices in revenue management, building on the success of this approach in the retail gasoline system.

The Prime Minister called for the swift submission of proposals to the competent authority in May regarding policies on tax, fee, and levy exemptions, reductions, and extensions in order to support businesses and individuals.

In particular, he highlighted the importance of promoting the healthy, safe, and effective development of the stock, corporate bond, real estate, and gold markets, while strictly addressing violations.

Additionally, the government will strengthen price and market management, with a suitable roadmap for adjusting the prices of state-managed commodities and public services. “Avoid sudden price increases, price hikes for multiple commodities at the same time, and price increases coinciding with salary increases,” the Prime Minister instructed.

The Prime Minister also called for加强管理 of emerging commodities such as gold, and ensuring the supply of essential medicines to the population. He assigned Deputy Prime Minister Le Minh Khai to continue directing relevant agencies in implementing comprehensive solutions.

The Prime Minister particularly emphasized the need to ensure a sufficient supply of electricity and gasoline under all circumstances; and to effectively implement the Power Master Plan VIII, accelerating the progress of ongoing projects to bring them into operation as soon as possible.

He also asked for the urgent completion and issuance of a decree on direct power purchase agreements between power generation units and large power consumers; the development of policies to encourage the development of rooftop solar power installations at homes, public offices, and industrial parks for self-consumption; and policies for the development of offshore and coastal wind and gas power.

“The overarching principle is that regulations must be practicable, provide incentives, remove bottlenecks, prioritize national and ethnic interests, and combat vested and group interests,” the Prime Minister said.

Furthermore, the Prime Minister instructed the government to make thorough preparations and report to the competent authority on the implementation of the new salary reform from July 1, 2024, ensuring fairness, consistency, and unity.

Duc Minh