WB: Vietnam Economy to Grow 5.5 per cent This Year

 

Direct impacts of the global crisis on Vietnam’s economy are restricted as local banks are not exposed to “toxic” assets and out of the control of foreign invested banks, the Vietnam News Agency said.

 

Vietnam’s small trade surplus [in the first quarter] was a result of sharp drops in imports, Martin Rama, chief economist of the World Bank said.

 

Vietnam’s exports will be less impacted from the global downturn than other countries thanks to competitive edges of its commodities. Vietnam may be added to the U.S. Generalized System of Preferences (GSP), the report said.

 

Martin Rama hailed adjustments in the monetary policies adopted timely by the government of Vietnam over the past months to cushion impacts from outside; however, it is facing shrinking global demand as well as domestic demand, resulting in business closures with more workers laid off.

 

The World Bank asserted that the fiscal police will play a pivotal role in Vietnam’s economy this year.

 

The WB also predicted that Vietnam will unlikely to face hefty current account deficit this year and state budget deficit will be 7 per cent of its GDP.

 

The government of Vietnam has just received permission from the Politburo, the most powerful body in the Asean country, to revise down GDP growth to 5 per cent and state coffer deficit of 8 per cent.

 

The IMF and the ADB also revised Vietnam’s GDP growth to 4.5 per cent and 4.75 per cent, respectively, state media said. (VNA, Banking Times, News)