Vietnam coordinates fiscal and monetary policies to manage inflation

Vietnam is focusing on the coordinated use of fiscal and monetary policies to manage inflation while supporting economic growth. Experts and regulators emphasize the need for flexible price management to navigate uncertainties from global geopolitical instability, particularly in the Middle East, which may impact energy and transport costs.

Recent data shows the Consumer Price Index (CPI) decreased in June and July, with a 7-month average increase of 4.39%. To maintain stability, authorities are looking at managing exchange rates and state-regulated prices. Additionally, the government is considering tax relief measures, such as reducing corporate income tax by 30% for small and medium-sized enterprises and individuals, to reduce costs and encourage reinvestment.

Prime Minister Le Minh Hung has directed the synchronization of fiscal tools—including tax and fee adjustments and public investment—with monetary tools like interest rates and credit regulation. These measures aim to create growth momentum without placing excessive pressure on credit or consumer prices.