A recent inspection by the Civil Aviation Authority of Vietnam (CAAV) into airline ticket sales, pricing, and disclosures has found no violations of government regulations. However, the review highlighted inconsistencies in how airlines present fare information to consumers and a lack of awareness regarding promotional offers.
Vietnam's aviation authorities insist domestic airfares remain within regulated boundaries, even as airline profits soar and travelers grapple with escalating costs. However, this delicate equilibrium between profitability and affordability may be approaching its breaking point, jeopardizing the nation's aspirations to bolster domestic tourism.
As economic storms rage worldwide, Vietnam's Deputy PM Le Minh Khai marshals forces to monitor price swings and deploy flexible strategies to rein in inflation within the 4-4.5% target for 2024.
Food prices increased 2.3 per cent year-on-year in August; the highest rise since November 2020 and the fourth consecutive month of higher prices. Transport services increased 8.94 per cent year-on-year in the month; the lowest level since April. The Bao Viet Securities Company (BVSC) has forecast that annual inflation will come in at around 3.1-3.5 per cent.
Addressing a seminar on August 12, the Chairman of the Vietnam Association of Road Traffic Construction Investors expressed concern over ongoing difficulties regarding materials, which have resulted in traffic project contractors, especially those in national key highway projects, facing the dilemma of losing money if they continue work but facing fines if they cease construction.
The Ministry of Finance (MoF) has issued Official Letter No. 7955/BTC-QLG to ministries, branches, people’s committees of cities and provinces, and corporations proposing that price management and stabilization be strengthened. Tasks proposed to be implemented include balancing the supply and demand of goods and services and actively advising authorities on stabilization.
Real estate in the Mekong Delta has not been affected by price hikes and remains largely affordable. With transport infrastructure being boosted and regional links strengthened in terms of roads, waterways, and airways, capital for real estate will be disbursed gradually and improve money flows.
