09:05 | 30/07/2019 Economy- Society
(VEN) - Information presented at the June meeting of the Domestic Market Management Team shows points to commodity market stability in the first six months of 2019 with no sign of major price increases. The results are expected to reduce inflation pressure in the second half of the year.
|Petroleum prices in the first six months of 2019 were lower compared with the same period last year|
The team attributed this stability to sufficient supply of goods and effective implementation of market stabilization programs.
Pork prices rose because of a decrease in supply resulting from a 10-percent reduction of pig herds due to the African swine fever virus. Experts say the people’s committees of centrally governed provinces and cities need to set schedules for market stabilization programs towards year’s end and encourage pork distributors to purchase and freeze products with veterinary certificates for supply during the later months of the year.
Total retail sales of goods in the first six months of 2019 were estimated at more than VND2,391 trillion, up 11.48 percent compared with the same period last year or up 8.6 percent if one discounts the price increases during that period. Among the 11 major groups of goods and services, three saw price drops and eight saw price increases. Meanwhile, the consumer price index (CPI) was down 0.08 percent in June compared with May due lower petroleum and food prices. The six-month CPI grew an estimated 2.65 percent compared with the first half of 2018, averaging 0.23 percent monthly.
The Vietnam Industry and Trade Information Center forecast that the CPI would be curbed at a low level in the second half of 2019 and the annual index would be 3.5-3.6 percent higher compared with 2018, below the four percent inflation target.
This forecast is based on projected stability of crude oil prices at US$60 per barrel. Compared with the first half of 2018, domestic prices of petroleum products in the first six months of 2019 were down 3.55 percent. The costs of medical and education services are also forecast to remain stable following major increases in recent years. The supply of goods is abundant while the domestic purchasing power is stable.
The abundant supply and stable prices of materials for agricultural production will also help maintain market stability towards year’s end.
Regarding foreign trade, in the first six months of 2019, Vietnam’s export value grew 7.1 percent compared with the same period last year. Twenty-two products were listed among goods with export value exceeding US$1 billion. Exports by domestic companies increased by 10.4 percent compared with the first half of 2018.
The Agency of Foreign Trade said Vietnamese exporters had taken advantage of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to boost exports to Canada and Mexico.