2:23:01 PM | 10/3/2008
The International Monetary Fund has sent a message to the State Bank of Vietnam, or central bank, to warn about economic problems Vietnam is facing.
IMF said that Vietnam needs to check and monitor recent investment projects, especially those using the state budget, to focus investment on effective projects instead of uncontrolled ones.
The establishment of too many small banks and the expansion of state-owned groups to many economic sectors in stead of focusing on their key industries have reduced businesses’ efficiency and made negative impacts on local financial market, the fund said.
IMF suggested Vietnam use multiple tools for macroeconomic adjustments in stead of reducing liquidity in banking system.
Vietnam’s central bank should not fix foreign exchange rate, but give it flexible trading band to improve liquidity.
IMF said Vietnam is hard to reduce state budget deficits and inflation in short term. (Securities Investment)
Vietnamese
