Morgan Stanley: Vietnam Economy still on Right Track

Vietnam is shifting to loosening its monetary policy by cutting GDP growth rate to 6.7 per cent from 7 per cent, slashing benchmark rate to 12 per cent from 13 per cent and axing compulsory reserves by 1 per cent for dong deposits, which shows that Vietnam's economy is still on right track, Morgan Stanley said in its publication last week.

 

Vietnam had recorded achievements in Oct such as inflation dropped 0.2 per cent on month, exports soared 19.2 per cent on year, imports were down 3 per cent on year, trade deficit accounted for 10.5 per cent of the country's GDP value, Morgan Stanley said.

 

However, the government should take measures to mitigate risks at home and risks outside, increase liquidity of the banking systems on par with narrowed trade deficit, Morgan Stanley proposed.

 

The Asean country may possibly face risks rooted from overheated growth and the global economic recession, it pointed out. (VNA)