Participants agreed that strong economic recovery will put significant pressure on prices, interest rates, foreign exchange, and inflation.

The Consumer Price Index will likely rise right at the beginning of the year because of global economic recovery and a surge in cost of materials and goods. Associate Professor Dinh Trong Thinh of the Vietnam Academy of Finance said there are two scenarios for Vietnam.

“In the first scenario, inflation will be from 2.8% to 3.2% if Vietnam posts a GDP growth rate of between 6% and 6.5%. In the second scenario, inflation will range between 3.5% and 3.8% in case the economy grows between 7% and 7.5%,” said Mr. Thinh. 

Experts at the seminar said that epidemic prevention will provide the prerequisite for production and market stability in order to keep the CPI under 4% this year as set by the National Assembly.