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Better to have inflation at 8pct this year for reasonable growth: Tuyen
This year's inflation should stay at 8 percent rather than 6 percent for reasonable growth, Truong Dinh Tuyen, former minister of Industry and Commerce was quoted as saying at the Vietnam economic forum 2012 on economic restructuring on 8 April.
Also, solutions to address the relation between growth and inflation for this year are what being hotly discussed. Dr Tran Dinh Thien, director of Vietnam Institute of Economics assumed the current economic picture to be alarming whereas some others presumed what are going on merely difficulties.
The economy is facing up to more difficulties than last year, probably slowing down this year's GDP growth rate compared to previous years, he predicted. It is important that inflation be brought down to 6-7 percent and enterprises be given special bail-out programmes so as to circumvent stagnancy.
Also, Cao Sy Khiem, former governor of the state bank of Vietnam affirmed inflation of a single digit, yet expressed doubt over the growth target. Similarly, Dr Luu Bich Ho anticipated this year's inflation to drop to one digit and acceptable GDP growth of above 5.5 percent.
According to Vu Viet Ngoan, Chair of the National Financial Supervisory Committee, it is vital to harmonise the given targets for this year. GDP should reach 5.6-5.9 percent and inflation of between 8 percent and 9 percent would be appropriate, he added.
What concerns him most is the credit growth target of 15-17 percent which could be far beyond reach. However, such goal should not be realised under any circumstances citing the likelihood of consequent inflation, he added.
vietbiz24
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