How to cool down commodity prices?

Controlling prices, cutting business conditions, taxes, not letting the supply chain break… are the solutions mentioned by experts to cool down the prices of goods.

After 4 consecutive declines with a reduction of more than 6,500 VND per liter, gasoline prices have returned to the same level at the beginning of the year. However, reflections from consumers show that some goods and services do not move in the same direction as gasoline while keeping prices and anchors high.

Talking about this phenomenon at the discussion about solutions for gasoline prices to fall, goods did not decrease on the afternoon of August 4, Ms. Dinh Thi Nuong, Deputy Director of the Price Management Department (Ministry of Finance) explained, the main reason for this phenomenon. from lag in the market. “Enterprises have to review the cost-forming factor of prices, and then determine the reduction according to petrol prices,” she said.

Agreeing with the price adjustment, there should be a delay, but expert Can Van Luc believes that the delay should only last a few weeks instead of a whole month as it is now. He said that the management agencies need to be more involved in reviewing and finding inadequacies.

In response, Ms. Nuong said that the Ministry of Finance had joined other ministries to check and declare goods affected by gasoline prices. If the price can be reduced, the units are required to declare it promptly. With petroleum products, the main factor pushing up production costs, the Ministry of Finance continues to propose tax adjustment options such as VAT, MFN preferential import tax…

Meanwhile, Mr. Tran Bao Ngoc, Director of the Transportation Department (Ministry of Transport) mentioned the reduction of unnecessary business conditions and procedures, creating a favorable business environment, helping businesses reduce production costs. In addition, he also said that the ministry is applying more information technology to help people and businesses save more.

Experts (from left to right) Mr. Vu Vinh Phu; Ms. Dinh Thi Nuong, Deputy Director of Price Management Department (Ministry of Finance); Mr. Tran Bao Ngoc, Director of the Department of Transport (Ministry of Transport) at the discussion on the afternoon of August 4. Photo: VGP

In addition to economic and technical measures, expert Vu Vinh Phu said that in order to keep the price level, it is necessary to ensure the demand for goods, avoid disruptions in the supply chain, especially the reduction in prices. intermediate stages.

“A kilo of pork from the farm to the retail point increases by 170% because of the middleman. This is a long-standing problem that needs to be further overcome,” said Mr. Phu. Experiences of other countries show that it is necessary to shorten the distance of the supply chain from the point of production to the point of sale as well as to legalize the distribution of profits in the value chain. On the other hand, to be transparent about selling prices, Vietnam needs to promote trade infrastructure.

“I checked dozens of wholesale markets, but none of the wholesale markets have an exchange. All current transactions are jokingly buying vinegar and selling it, forcing prices together, not making it public,” commented Mr. Phu.

In addition, Mr. Can Van Luc noted that the price should not be overreacted because the market’s expectation is that fuel and food products globally will follow the cooling trend.

“The excessive worry about inflation will make us tighten measures, dare not do anything, which can cause economic stagnation, lack of supply in the long run. This causes prices to escalate.” , he said. According to him, the psychology of inflation is very important, if this can be limited, it will help goods avoid the phenomenon of “slapping water in the rain”.

Duc Minh


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