Under the pledge made to the ministry, certain petroleum retailers will bring down cooking gas prices by VND330 per kilogram while the prices on several dairy products have been already cut 4 – 8 percent.

Several steel firms like Vietnam – Australia Steel and Thai Nguyen Steel have cut prices between VND100,000 – VND200,000 per ton.

The ministry’s investigation teams inspected five dairy, four gas and five steel companies across the country over the past month following orders by the central government to fight inflation.

Nguyen Tien Thoa, head of the ministry’s Price Management Department, said the probes found no evidence that businesses had increased retail prices irrationally and confirmed that recent price hikes had been driven by the rising cost of imported materials.

Ingot steel prices rose by nearly 20 percent, powdered milk price soared by 25-97 percent, and gas by 8 percent.

However he emphasized that many businesses had failed to fully consider other measures to cut production costs and maintain retail prices.

Many had also resisted calculating import tax savings into their retail prices.

Retail goods prices should fall following the government’s recent cuts in import taxes, said Thoa, adding that if businesses did not cut prices systematically, the state would retrieve the tax savings.

But nearly a month after tax cuts between 30 and 60 percent on key commodities, few goods prices have been reduced.

Still on alert

To better stabilize prices in the fourth quarter, Thoa said that relevant offices would maintain prudent inspections, particularly in the provinces.

Local authorities would also be expected to take action if they find sharp price increases.

The Ministry of Industry and Trade have been cooperating with ministries and trade associations to balance supply and demand and meet domestic demand for the latter part of the year.

The Ministry of Agriculture and Rural Development would also watch animal feed prices to lessen negative impacts on meat and other food prices, Thoa said.

Businesses would be required to report any price hikes based on rising material costs to the authorities.

He forecast that the consumer price index (CPI) would hold at or below 8 percent in the latter months, with this month’s inflation estimated at 0.2 – 0.3 percent  on the back of drastic measures taken by the government offices to control prices.

Source: Thanh Nien.