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IMF, WB: Vietnam’s economy begins to improve
Vietnam 's economy has begun to stabilise but economists warn that the government must stay the course as the global financial system is plunged into crisis.
"Compared to two or three months ago, economic conditions have definitely improved," the International Monetary Fund's (IMF) country representative Benedict Bingham was quoted by news agencies as saying.
"The government is to be commended for stabilizing the situation and breaking the negative sentiment," Bingham said. He praised the central bank for restoring trust in the dong currency and fighting inflation and credit growth through tightening liquidity with higher interest rates and other measures.
Sin Foong Wong, country chief of the International Finance Corporation (IFC), an arm of the World Bank, also praised Vietnam's recent efforts, saying things have become better compared to the situation in the middle of the year.
"Now inflation has trended down, Vietnam had its lowest month-to-month increase in September, and most important, food prices have also come down, especially rice," he was quoted as saying.
"If we look at the trade deficit, we begin to see the alarming trend to be mitigated on a monthly basis as the measures taken to cool the economy begin to have an impact on imports," Wong said.
However, experts said that Vietnam's young and insulated financial sector is not directly exposed to the factors that drove the US banking meltdown, such as the subprime crisis, but the economy is sure to feel the wider effects of the turmoil, they said.
According to the IFC official, Vietnam’s exports might be impacted if there is a recession in the US and Europe.
VNA
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