PM: Vietnam able to deal with challenges for sustainable growth
Hanoi (VNA) – Vietnam is capable of resolving the current difficulties to maintain sustainable growth, Prime Minister Nguyen Tan Dung told J.P Morgan Chase chief economist Dr. David Fernandez.
At a recent working session with David Fernandez in Hanoi , PM Dung said it was impossible and also unwise to bring inflation down immediately, and it required more time, while trade deficit will be reduced to 30 percent by the year-end and set to fall further next year.
The PM also affirmed that Vietnam will continue to manage the exchange rate based on the market’s supply-demand, noting that the nation’s balance of payments showed 1 billion USD surplus in the first five months despite its trade deficit. The balance of payments surplus is expected to increase to 2-3 billion USD this year.
The government was able to intervene to maintain stability of the Vietnamese dong and normal import activities, he said, adding that the State Bank of Vietnam is allowing a forex band of 2 percent.
PM Dung went on to say the government is interfering in the official foreign exchange market to support and stabilise import activities to achieve the targets, and at the same time instructing relevant agencies to monitor foreign exchange agents to prevent speculations.
He called on foreign investors and experts to make objective assessments of the Vietnamese economy, affirming that Vietnam will increase the provision of economic information to the public and international investors.