Many international organizations have highly appreciated Vietnam’s efforts to control inflation this year, which is within the target threshold of inflation control of 4%.
In the report titled “Vietnam: Strong recovery amid external turbulence”, the ASEAN+3 Macroeconomic Research Office (AMRO) assessed that Vietnam’s inflation is expected to be kept under 3.5% this year. AMRO attributed this to its plan to use its oil price stabilization fund and manage prices to offset pressures arising from developments in global energy prices.
In the “Vietnam at a glance” report in May, HSBC said that Vietnam’s inflation pressure is still low in the ASEAN region.
With domestic demand continuing to recover and world commodity prices tending to rise, HSBC forecasts Vietnam’s inflation will stay at 3.7% this year. Price pressure is likely to remain below the SBV’s 4% inflation ceiling, the report said.
“Vietnam is on the right track in controlling inflation this year, as it has promptly reduced value-added tax and environmental protection tax on gasoline. Besides, efforts to ensure an abundant domestic supply Abundance and price control of essential commodities have minimized inflationary pressures,” commented Mr. Brian Lee Shun Rong, Macroeconomic Researcher, Maybank Investment Bank, Singapore.
Rising oil prices are continuing to drive the need for a clean energy transition. Vietnam can achieve net-zero emissions by 2050. The goal of being carbon neutral by 2050 could make Vietnam independent of fuel imports. Long-term energy security will be improved. This is the conclusion of the Danish Energy Agency in the recently published Vietnam Energy Outlook 2021.
“I think this is an opportunity for Vietnam and I hope we can seize this opportunity. Europe has been in the process of green transition for about 20 years now. So I believe we can bring good solutions for Vietnam, cooperate, transfer technology and provide finance,” said Alain Cany, President of the European Chamber of Commerce in Vietnam (EuroCham).
The report also said that reducing fossil fuel imports would save Vietnam $42 billion per year by 2050.