Price management and stabilization efforts would focus on essential goods and services such as fresh food, foodstuffs, travel and transport services, and materials for production.
The heat of inflation does not appear to be too significant in Vietnam, with the World Bank (WB) forecasting a rate of around 3.8 per cent for this year. However, factors such as fluctuations in energy prices, the end of policies supporting lower taxes, rising prices for public services, and higher wages will make controlling inflation more difficult.
Ms. Duong Thuy Dung, Senior Director of the Valuation, Research, and Consulting Department at CBRE Vietnam, said that more than 50 per cent of investors have problems with loans for real estate investment. If they continue to borrow, the cost will increase greatly. They want to sell but are unable to do so. If credit is not loosened by 2023, the real estate market will see a sell-off and prices will fall.
The price of essential goods and transportation remain expensive, despite the price of gasoline being cut on four different occasions. The Ministry of Finance (MoF) has said that the large number of interwoven factors and certain items long having higher input material costs means it is not possible to cut prices immediately and some delay will be experienced.
In the face of global price pressure, on June 13 Deputy Prime Minister Le Minh Khai, Head of the Steering Committee for Price Management, called for strict management over the prices of certain essentials as well as freight rates. Regarding petroleum products, he asked for flexible management and the reasonable use of the Price Stabilization Fund.
From the beginning of the year to the middle of March, domestic fertilizer prices increased three times and are now 20 per cent higher than at the end of 2021. Price rises are primarily due to many import contracts being canceled by foreign partners. It is forecast that prices will continue to increase as the conflict between Russia and Ukraine shows no sign of ending.
According to Mr. Nguyen Van Dinh, Chairman of the Real Estate Brokers Association, public investment will be promoted this year and create a stronger driving force for economic development, to the benefit of the real estate market. Transaction numbers will grow, but prices for residential real estate will remain under pressure because of low supply, rising land prices, and inflation.
Vietnam’s automobile market welcomed many new models in different segments in September, with prices ranging from VND600 million ($26,415) to VND5 billion ($220,160). Some models feature artificial intelligence and are assembled in Vietnam.
