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| Vietnam bans increases in power & coal prices in 2008 - 07 Aug, 2008 | ||
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VNA reported that Vietnam has banned companies from raising prices of electricity, coal, water and bus transportation in 2008 to slow the fastest inflation in Asia. Keeping prices unchanged means state owned enterprises will have to reduce production costs and accept lower profits. As per report, the government will revoke licenses or prosecute companies that take advantage of higher fuel costs to increase prices of products without justification. The 76 companies, which contribute 40% to Vietnam's gross domestic product, have to share the burden in fighting inflation. Mr Nguyen Tan Dung PM of Vietnam said that the global and Vietnamese economies are still in an unstable, complicated and unpredictable state, making it more difficult for the authorities to slow inflation. It may be noted that Vietnam government on July 21st 2008 raised the retail price of the most commonly used grade of gasoline by 31% and kerosene by 44% to reduce the burden of government subsidies paid to fuel retailers. Vietnam's consumer prices rose by 27% YoY in July 2008, the fastest since at least 1992. | ||
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