|
Vietnam’s efforts to curb inflation in spotlight
Vietnam ’s tightened financial-monetary policy to stabilise the macro economy and rein in inflation was one of the major topics tabled for discussion at the second Vietnam Economic Forum (VEF) in Hanoi on Sept. 19.
Don Hanna, managing director and emerging market analyst at Citigroup, said at the forum that Vietnam will be successful with its efforts to deal with issues resulting from increased investments, decreasing property prices, high inflation and weak financial balance.
He suggested the Government of Vietnam should step up the restructuring of state ownership, as well as focus sources on major fields such as education, infrastructure and social security.
The expert added that Vietnam needs to improve transparency, ensure stability of the market, and develop a wider and more sophisticated array of financial markets while ensuring improvements in market infrastructure and regulatory capacity.
However, he also warned that Vietnam ’s increased basic investment last year has worsened the deficit of its current account.
To solve the said-above issue, senior expert of the World Bank in Vietnam Noritaka Akamatsu said Vietnam should further boost exports and continue pouring investment into infrastructure.
Vietnam should take into consideration the establishment of a pension fund as it is one of the ways to mobilise long-term saving deposits, Akamatsu added.
The WB expert also pointed regulatory capacity, particularly the ability to control risks by local financial institutions, as another important factor.
Minister of Finance Vu Van Ninh affirmed that the State will not make direct intervention into the financial and credit market, but increase its inspection and supervision of the banking system and financial institutions to avoid systematic risks and possible financial crises.
“The Government will also work to improve the competitiveness edge of businesses because it is a basic factor to ensure the economic growth and sustainable development,” the minister stressed.
The forum entitled “Sustaining the Growth” was organised by the Ministry of Planning and Investment in co-ordination with the Vietnam News Agency and the Asia News Network, an organisation grouping 19 Asian newspapers.
It brought together more than 600 domestic and foreign economic experts, policy makers and businesspeople who discussed changes in the world financial system, their impacts on Vietnam ’s economy as well as solutions to deal with existing financial, human resource and infrastructure problems.
VNA
|
