4:32:41 PM | 31/10/2008
Minister of Planning and Investment Vo Hong Phuc said that the government of Vietnam will keep close watch on deflation while continuing to prioritize to curb inflation.
“It is impossible to conclude deflation has emerged in Vietnam’s economy as deflation depends on a number of factors such CPI, supply and demand. CPI has dropped 0.19 per cent in Oct, just for the first time,” Phuc said.
However, the government has solutions to combat it because it will take more time to tackle than inflation, Phuc added.
Cao Sy Kiem, president of Vietnam Small and Medium Businesses Association said that “deflation is not worth worrying,” and he believes that Vietnam’s economy grows 6.5 per cent and jobs generations are stable.
Economists proposed combining tight fiscal policies and adopt tax breaks. (Vietnam Economic Times)
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