In an effort to address inflationary pressures, the Deputy Prime Minister has instructed ministries and branches to develop proposals for adjusting electricity prices, as well as health and education services, in June. The Ministry of Industry and Trade had suggested adjusting electricity prices to reflect input costs and support Vietnam Electricity Group (EVN). However, there was no specific price plan proposed by the Ministry of Industry and Trade, according to the Ministry of Finance.
During a meeting of the Price Management Steering Committee on June 12, Deputy Prime Minister Le Minh Khai instructed the Ministry of Industry and Trade to develop a scenario outlining the timing and extent of the electricity price adjustment in June. He also requested scenarios for managing goods in the education and health sectors to be prepared this month.
The Prime Minister emphasized the importance of having a balanced and gradual roadmap for adjusting electricity prices that aligns with market conditions. Experts believe that any increase in electricity prices should be carefully calculated and scheduled to ensure market competitiveness while controlling inflation. The mechanism for adjusting retail electricity prices every three months based on input cost fluctuations was initiated in May.
In addition to electricity prices, education and health services, as well as other factors like domestic air tickets, logistics costs, and surcharges, are expected to contribute to inflationary pressures. To manage these challenges, ministries and branches were advised to stay vigilant and responsive to ongoing economic fluctuations and geopolitical events.
Deputy Prime Minister Le Minh Khai stressed the need for supply chain stability for essential items, such as petroleum, to avoid disruptions caused by conflicts and geopolitical tensions. The goal is to ensure a steady supply of goods and services while managing inflationary risks to achieve this year’s target CPI of 4-4.5%.
