Mixed Signals On All Fronts

Vietnam's decision to raise domestic fuel prices by 36.8% on July 21 came only two weeks after the government stated that fuel prices would be kept unchanged for the rest of 2008. This therefore raises question marks about economic policy going forward. Unsurprisingly, July's consumer price inflation rose to a new 17-year high of 27.0%, and could rise even higher in August, since the fuel price hike had yet to be reflected fully in July data. Although there have been no signs of mass public unrest, we continue to view higher fuel prices and inflation as a risk to social

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