Inflation cools down hot news

February 04, 2013 | 14:34
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Vietnam is on red alert regarding the consumer price index, despite industrial production and export gains in January.

The Vietnamese government last week reported that in January, Vietnam’s export turnover reached $10.1 billion, up 43.2 per cent on-year and its import turnover was $9.9 billion, up 42.3 per cent on-year. Thus, the country enjoyed a trade surplus of $200 million in the first month of this year.

“This is a very positive result, after Vietnam last year saw a trade surplus, at $284 million,” said Vu Duc Dam, Minister of the Government Office.

Some export items witnessed remarkable on-year growth, like telephones and spare parts (105.5 per cent), electronics and computers (94.9 per cent), garments and textile (28.4 per cent), wooden products (50.3 per cent) and machinery (25.5 per cent).

Notably, the export turnover of telephones and spare parts, almost all exported by South Korea’s mobile phone maker Samsung Electronics Vietnam, took the helm with $1.5 billion. Last year, the firm’s total export turnover touched $12.72 billion, holding 12 per cent of Vietnam’s total export turnover.

It was forecasted that Samsung Electronics  Vietnam would continue making greater contributions to Vietnam’s total export turnover this year, with the estimated $16.3 billion value.
Dam said local production had been recovering gradually, thanks to bigger imports and exports.

Specifically, Vietnam’s index for industrial production (IIP) in January 2013 augmented 21.1 per cent on-year, with many key sectors hitting big IIP rises. For example, the growth rates were 4.7, 26.3, 20.7 and 10.3 per cent for mineral exploitation, manufacturing, power production and distribution, and water supply, respectively. Some products with high IIP growth included garments (49.1 per cent), footwear (52.5 per cent), telecommunications equipment (52.6 per cent) and animal feed (23.6 per cent).

However, the Vietnamese government reported that the consumer price index (CPI) in January climbed 1.25 per cent from a 0.27 per cent rise  last December.

This monthly CPI rise recorded the highest monthly level since last year’s February, excluding a sudden 2.2 per cent hike in September 2012 caused by rising prices of education and medical services.

“January’s abnormally high CPI is a warning signal for us as it may affect the government’s target of taming inflation [at around 6 per cent for 2013]. We must take greater caution in macro-economic monitoring,” Dam said.

This CPI rise was ascribed by governmental agencies to 10 cities and provinces in January increasing prices of drugs and medical services, which were up 9.5 per cent on-month, and to a lack of foodstuff due to bad weather affecting local farming production.

Prime Minister Nguyen Tan Dung last week asked governmental agencies to make sure sufficient goods available for coming Tet in order to prevent high price hikes.

By Nguyen Dat

vir.com.vn

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