Vietnam Shifting to Boost Eco Growth from Inflation Fight
Vietnam has been switching to boost its economic growth with demand stimulus measures from fighting inflation since end-2008, First Deputy Prime Minister Nguyen Sinh Hung told Thomas Byrnes, an analyst and head of Moody's delegation in Hanoi April 2's evening.
“A shift in government policies is aimed at maintaining economic growth and job generations as well as ensuring social security,” Deputy PM Hung said.
The government will boost investments into transport, irrigation infrastructure, schools and healthcare services with aims to pursue sustainable development in coming years, Hung noted.
With demand-stimulus packages, the domestic economy is expected to grow faster in second quarter than 3.1 per cent in the first, Hung added.
“Top task is focusing on disbursements of ODA and FDI as well as giving a boost to the domestic consumption market,” Hung elaborated.
Banks in Vietnam have made low-cost loans of VND200 trillion for the economy so far.
The government has agreed to spend additional US$1 billion to boost consumption demand in rural Vietnam and signaled the State Bank of Vietnam, the country’s central bank, to review benchmark interest rates as inflation is easing.
Inflation is forecast to cap at 6 per cent this year.
The Asian Development Bank has forecast Vietnam's economy will slow to 4.5 per cent and it will recover to 6.5 per cent next year and average annual inflation will be capped at 4 per cent this year.
The World Bank and the International Monetary Fund forecast Vietnam's economy will slow to 5.5 per cent and 4.75 per cent from 6.5 per cent and 5 per cent, respectively. (chinhphu.vn, VTV)
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