4:59:03 PM | 13/11/2008
Takeshi Hachimura, a chief advisor of the Japan International Cooperation Agency (JICA) has told Vietnam Economic Times that Vietnam and Asian countries will unlikely face deflation, but face slowing down growth rates in the face of the global financial crisis.
Deflation happens if aggregate supply, demand shrink, which leads to consumer prices, production capacity and demand as well as manpower demand, Takeshi Hachimura said.
CPI in Oct was minus 0.19 per cent on month, a good sign of the economy. If continuing taking cautious measures, Vietnam will be able to control inflation. The global financial turmoil will absolutely have bad impacts on Vietnam's exports as the U.S. buys up to 20 per cent of Vietnam's exports.
However, in the long- and medium-terms, Vietnam's economy has good growth prospects; impacts from the turmoil are temporary, he said.
Vietnam's economy has young and dynamic labor forces, great teeth for growth prospects, he said. (Vietnam Economic Times)
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