HANOI, Jan. 16 (Xinhua) -- Vietnam's target to keep inflation at 4.5 percent in 2023 will be put under greater pressure due to a number of factors, local media reported on Monday.
The demand-pull and cost-push inflation will put pressure on the country's efforts to control inflation amid surging demand and strengthening U.S. dollar that causes rises in imported input prices, Vietnam News Agency reported, quoting local economic expert and former head of the General Statistics Office Nguyen Bich Lam.
Rising demand and increasing coal and gas prices will likely drive up energy prices, creating further inflationary pressure, he said, noting that other factors including basic wages, food prices, and health and education services will also contribute to the inflation.
"Given these factors, it's not easy to keep inflation at 4.5 percent in 2023 as targeted," he said.
Noting that the inflationary pressure for Vietnam's economy in 2023 is "huge" and comes from many factors, the expert said the government, local authorities and businesses should be proactive, responsible and flexible in performing their duties.
He suggested the government simplify administrative procedures to help firms cut input costs while creating a transparent investment environment.
It is also important to have flexible fiscal and monetary policies, stabilize the macro economy and adjust the exchange rate flexibly to avoid imported inflation while keeping the foreign exchange and money market stable, he said.
The Standard Chartered Bank has forecasted Vietnam's economy to expand by 7.2 percent and inflation to reach 5.5 percent this year. ■