Keeping market prices under control in 2014

In a weekly Q&A session for Cabinet members organised by the Government portal on January 12, Dung said effective management of market prices, especially essential commodities, is one of the sector’s priorities in 2014 to stabilise the macro-economy.

“We believe once the macro-economy is kept in check this year, market prices in 2014 will be more stable,” he said.

Minister Dinh Tien Dung says the financial sector will prioritise stabilising market prices in 2014

The minister stressed the prices of essential commodities such as oil and petrol, electricity, coal and gas will be executed in a way to avoid market shocks, contributing to the inflation control goal and harmonising the interest between the State, businesses and consumers.

The sector will continue removing the price cross-subsidy mechanism, but ensure vulnerable groups in society, including the poor, policy beneficiaries, and those living in far-flung areas, will not be affected.

Dung said Vietnam is eradicating the price cross-subsidy mechanism for a number of commodities, citing coal as a case in point in 2013. He underlined the need to promote the transparency in price management and adjustment to avoid market shocks.

He confirmed petrol and oil prices have been adjusted in line with the market-based mechanism and under State management since 2009.  

In 2014, he said, the ministry will make public global oil prices every day to support businesses in fixing domestic price levels.

The Finance Minister also talked about measures to combat transfer pricing and tax dodging for businesses in Vietnam.

Transfer pricing and tax dodging are a common occurrence in foreign countries, and Vietnam is no exception, especially during international integration and foreign investment attraction.

Dung said the ministry has gradually controlled transfer pricing, with its tax agencies managing nearly 3,190 businesses and a database for tax management being built to back inspections.

According to the minister, the number of foreign-invested companies claiming losses has fallen considerably, helping create a healthy competitive environment for all businesses.

He called on the Ministry of Planning and Investment and the Ministry of Science and Technology to get involved in the fight to nip any violations in the bud.