A vendor sells fruits and vegetables at a local market in Hanoi. As the government starts a new term in office, people are looking for more determined efforts from the government to curb inflation that has hit them hard for several months now.
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The highest positions in the nation’s governing hierarchy have been filled.
The Vietnamese government is starting a new term with promises and commitments to foster strong socio-economic development.
Well and good, but the leaders should not forget what people need most at the moment.
The consumer price index (CPI) suddenly increased 1.17 percent over the previous month.
This increase goes against the slowing inflation observed in June and May, and threatens to deny all the efforts made by the government and people so far. In fact, it is much higher than the rate over the same period last year - 0.06 percent, and the highest among July CPI increases recorded over the past 19 years.
With expectations that the CPI will rise more next month, everyone is hoping the government will get bolder about tackling the issue that has made their life so hard for months.
The people’s expectations and hopes, in some way, are the biggest and most important “orders” for the government as it begins a new term in office during the last months of this year.
First, there is a need to fill up “loopholes” that have become apparent in the process of tightening the monetary policy, which has been implemented since the beginning of this year. For example, the government needs to more closely supervise the restriction of credit for non-manufacturing purposes and do a better job of monitoring direct capital flow to manufacturing and business.
Second, the matter of reducing public investment. Here, the question is not only about effecting cuts, but also about how and where the reductions are made. According to the Ministry of Planning and Investment, as of May, public investment has decreased by over VND80.5 trillion (US$3.9 billion).
However, the figure has provoked controversy, because it is unclear about where the investment cuts have been affected. If there is no transparency, this is bound to happen.
Therefore, what the government needs to do during its new office term is to make clear the details of the process. Only then can it retain the trust of the people and show them that their representatives are acting in the best interests of all people in a determined fashion.
Third, the government needs to be clearer about price increases on necessary items like electricity and fuel, because even some small adjustments in these prices can make the prices of consumer goods, and transportation fees go up, directly impacting the daily lives of the nation’s citizens.
It is only when there are no random increases in the prices of essential goods that the government’s price management and other measures to control inflation, can be effective.
The government also needs to strengthen measures to deal with rumors and schemes to increase prices unreasonably, as well as moves to create fake demand.
Meanwhile, forecasts about the market and CPI, together with plans to decrease interest rates, need to be made public so that both the common man and the entrepreneur can make informed decisions about their daily life and investments.
Thanh Nien News
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