Firms will need support from the state with stabilising prices

Many Vietnamese enterprises are determined not to increase product prices, despite demand from some suppliers. The Vietnam News Agency interviewed economist Vu Dinh Anh about the issue.

What is your assessment of the move by some enterprises not to push up their prices?

In the past, it seems that the burden of controlling inflation and stabilising market prices was mainly left to relevant State authorities. But from the beginning of this year as inflation rose higher, there was positive participation by many Vietnamese enterprises and commodity distributors – probably for the first time. This combined effort has raised the efficiency of price control and curbed inflation.

This leads the way for Vietnamese enterprises, particularly manufacturers, to participate more actively in price stabilisation, meaning that it will no longer be solely the responsibility of State management agencies as before.

Along with the economic integration process, Viet Nam’s distribution networks must also be improved so that the cost of getting goods to the marketplace is kept as low as possible. This will not only raise competitiveness, but contribute to price stabilisation for the whole economy. This is an indispensable trend in a developing economy.

What are the specific benefits of actions taken by local enterprises?

The market would have witnessed more uncontrolled price increases in the first months of this year if enterprises and distributors did not take action. This would have negatively impacted on market stabilisation and reduced the efficiency of inflation control measures.

It can be said that the participation of enterprises in price stabilisation has been a constructive experiment.

Should the move be encouraged?
As the Vietnamese market is in the process of development, it is necessary to encourage players in the market as well as establishing State rules. Encouragement should not only be in the form of words and education. State management offices should also work out policies and regulations to capitalise and expand on the situation.- VNS

Tags: Vietnam companies, Vietnam enterprises