Vietnam to Grow 5.8 Pct in 2011: ADB

The Asian Development Bank (ADB) revised the Vietnam’s growth forecast in 2011 down to 5.8 percent from the April projection of 6.1 percent. The country’s economic growth rate will rise to 6.5 percent in 2012, lower than previous projection of 6.7 percent.

 

The Asian Development Outlook 2011 Update report says Resolution No. 11 of the Vietnamese government is seen as a comprehensive package of policies that has obtained initial positive results in stabilizing the foreign exchange rate, increasing the state's foreign currency reserves and gradually reducing inflation during the June-August period.

 

However, it is too early now for Vietnam to loosen the macroeconomic policies, because inflation per year is still over 20 percent. Loosening the tightened policies may decrease efficiency of efforts to stabilize the economy and reduce confidence of investors and consumers in the Vietnamese dong, hence giving a pressure on foreign currency reserves.