Hanoi seeks to rein in prices

08:36 | 22/08/2018 Society

(VEN) - Hanoi’s June consumer price index (CPI) is considerably higher than the country’s average, requiring various solutions to tame it and ensure economic growth in the remaining months of 2018.

hanoi seeks to rein in prices
Hanoi has experienced a high growth in retail sales of goods and service revenues

According to the Hanoi Department of Industry and Trade, in the first half of this year, the city’s gross regional domestic product (GRDP), index of industrial production (IIP), development investment capital, and total retail sales and service revenues grew 7.07, 8, 9.9 and 10.1 percent compared to the same period last year, respectively.

The CPI in June increased 0.74 percent over the previous month and 5.54 percent over the same period in 2017 due to soaring prices of food and catering, accommodation, electricity, water, fuel, building materials, and transport services. The CPI in the first half of 2018 grew 3.4 percent compared to the same period last year, higher than the country’s average (3.29 percent). The CPI in July is expected to grow 0.2-0.3 percent compared to June.

In the second half of this year, apart from such domestic factors as food prices and potential natural disasters, oil and commodity prices in foreign markets and tightened monetary policies of major countries are expected to affect the economy. To control CPI and achieve the target of a 10-percent growth in total retail sales of goods and service revenues, according to Tran Thi Phuong Lan, Deputy Director of the Hanoi Department of Industry and Trade, the department has asked sectors and localities to regularly update on price and market changes, especially those related to essential goods. The department will also work with relevant organizations to strengthen connectivity and cooperation among production, processing and trading businesses, Lan said.

Hanoi will promote commercial infrastructure development and expand sales networks. Specifically, the city will encourage investment in 12 trade and service projects, expand sales networks through increasing the delivery of goods to rural areas, promote branding, and assist enterprises in obtaining loans for production and trade development. In addition, Hanoi will launch trade promotion activities such as a promotion month for 2018 (scheduled for November) and a Vietnamese goods fair scheduled for September.

The Hanoi People’s Committee has sent documented requests to sectors and city localities, asking them to take

measures to control the CPI and accelerate the growth of total retail sales and service revenues in the remaining

months of this year.

Nguyen Hanh