Vietnam to contain inflation in 2018, won't boost economic growth at any cost: PM

Vietnam will continue to implement cautious monetary policies in order to avoid causing inflationary pressure while accelerating the restructuring of credit organizations and the settlement of non-performing loans in association with guaranteeing credit quality, Prime Minister Nguyen Xuan Phuc wrote in an article published on the government website on Thursday.

The prime minister also stressed the importance of controlling inflation, stressing that it would be a huge task in 2018 as global prices of oil and essential goods continue to rise.

The PM noted that strict fiscal policies will be implemented to ensure financial discipline, while drastic measures will be needed to counter budget revenue losses, price transferring, tax fraud and tax base erosion.

In addition, the government will properly allocate resources at all levels, while beefing up disbursement and allocation of public investment to stimulate private investment. It will also continue to implement a roadmap to abolish price subsidies for electricity, education and healthcare services, while renewing its support for policy beneficiaries.

Phuc stressed the importance of improving labor productivity, accelerating administrative reform and improving the business environment.

The PM also said the country needs to utilize foreign technical assistance and learn from its international peers.

In order to maximize the benefits of free trade agreements, the country needs to improve related mechanisms and policies, he added. Vietnam’s trading value with the rest of the world increased to nearly $425 billion last year, four times higher than ten years ago when Vietnam joined the Word Trade Organization.

Vietnam will continue its efforts to maintain macroeconomic stability, and not to boost economic growth at any cost, the prime minister stressed.

Vietnam’s economy expanded 6.81 percent last year, the highest in a decade, making it one of the fastest growing economies in Asia and the world. Vietnam's consumer price index rose 3.53 percent in 2017.