Vietnam finance minister warns of rising inflation pressure after CPI surge

Speaking at the government’s regular meeting on Monday, the minister addressed some highlights of the socio-economic performance in the first four months of the year, while putting forward key measures to boost the economic growth in the coming months.

The Consumer Price Index (CPI) in April jumped to 5.46 percent from 4.65 percent in March.

He attributed the uptick to global fuel prices, which pushed up the costs of transportation, dining services, and construction materials.

The government took steps to cushion domestic fuel prices, including cutting taxes on petroleum products to zero and implementing eight price adjustments that reduced fuel costs by 3-20.5 percent compared to late March.

However, average global oil prices in April remained above US$110 per barrel, leading to domestic prices still higher than the same period last year.

Also, he pointed to additional inflationary drivers, including rising electricity demand during the peak dry season, as well as scheduled increases in healthcare and education service fees.

Together, these factors are expected to sustain upward pressure on prices.

To address inflation and support growth, the ministry has proposed the government direct the Ministry of Industry and Trade to ensure sufficient and competitively priced fuel supplies, as well as reliable electricity provision during the hot season.

It also called for the effective use of the fuel price stabilization fund, supported by temporary budget allocations.

Meanwhile, the Ministry of Construction should issue detailed guidance by May 10 on adjusting contracts amid volatile construction material prices.

Local authorities are urged to complete planning for material mines in the second quarter of 2026 to secure supply for infrastructure projects, while strengthening price management in their provinces and cities.

The Ministry of Finance also suggested some solutions for attracting local and international tourists in order to effectively tap the upcoming summer travel season.

In addition, the ministry called for vigorous fight against illegal imports and sales of goods without clear origin, as well as food safety violations.

It is necessary to help firms complete investment procedures to bring registered projects into operation more quickly, he said.

The Ministry of Finance has urged ministries, departments, and local authorities to evaluate project efficiency, allocate capital effectively, and speed up public investment disbursement.