Overcapacity contributes to Vietnam’s low inflation rate

Nguyen Duc Do, deputy director of the Institute of Economics and Finance, forecast that the year-on-year CPI growth would rise to roughly 5.1% in January and then fall to around 3%, resulting in a year-round inflation of 3.5% for 2023.

HANOI: One of the factors behind Vietnam’s low inflation in 2022 was overcapacity which constrained firms from rising product prices, according to Nguyen Duc Do, deputy director of the Institute of Economics and Finance at the Academy of Finance.

Do was speaking at the seminar “Market development and price movement in Vietnam: outcomes in 2022 and outlook for 2023”.