Vietnam 2012 CPI Estimated at 8%

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Nov. 19 – Vietnam’s Ministry of Planning and Investment has just reported at the Third Session of the National Assembly XIII that if there is no major fluctuation during the last 2 months of 2012, and if policies affecting the economy and prices are managed actively, cautiously and drastically, then the country’s CPI for the year shall meet the target of 8 percent, as assigned by the National Assembly.

The consumer price index growth rate at the end of 2012 could be higher than the early 2012 estimates due to increasing world prices and input prices, health care fees, and tuition fees, among others. The CPI in 2012 is predicted to increase less than 10 percent year-on-year, achieving the congressional target. However, the government also directs the implementation of solutions to strive to control the speed of the CPI growth to about 8 percent.

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Also, according to the General Statistics Office, the CPI in October 2012 only increased by 0.85 percent, and compared with September 2012, CPI in October has slowed down considerably. Compared with December 2011 (ie 10 months), the CPI increased by 6.02 percent. Based on the analysis of statistics from the previous year, the low CPI this year will be less than half of last year’s growth rate (18.13 percent), achieving the initial objective (below 10 percent) and target equivalent adjustment (8 percent).

In various areas, ration prices fell and food prices also increased at a low rate; the two groups account for nearly 40 percent of the “basket” of CPI goods and services. It shows that in agriculture, farmers have an important contribution to the cause of curbing inflation this year.

Total state budget revenue in 2012 is estimated at 741 trillion dong, up 5.3 percent compared with 2011. Total state budget expenditures in 2012 were estimated at 904.1 trillion dong, up 15 percent compared with 2011; in which spending for investment and development is 187.5 trillion dong, down 4.6 percent from 2011.

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