Vietnam has successfully exited from the economic stimulus measures in response to the global economic crisis in 2008-2009 to the policies aiming at stable growth, announces the Asian Development Bank (ADB) Resident Mission in Vietnam on September 28.

 

In order to prepare for the next ten year period as a new Middle Income Country, however, Vietnam needs to be cautious in maintaining macroeconomic stability and effectively communicating such a policy stance to the public while accelerating reforms, ADB said in the Asian Development Outlook 2010 Update (ADO Update).

 

ADO Update increased its growth forecast for 2010 from 6.5% to 6.7%, and for 2011 from 6.8% to 7.0% while lowering the inflation projection in 2010 to 8.5% and 2011 to 7.5%, respectively.

 

“Since the last press conference on ADO 2010 in April this year, Vietnam has consolidated its macroeconomic stability, and as a result we are making upward adjustments in our growth forecast for both 2010 and 2011, while lowering the projections for inflation”, said Mr Ayumi Konishi, ADB Country Director for Vietnam.

 

ADO Update noted that the steps taken by the Government to stabilize economy has contributed to an improvement in the external and foreign reserves positions. With an improvement in the capital account, the overall balance of payments likely turned to a small surplus in the second quarter 2010 after recording deficits since the start of last year. Economic growth quickened in the second quarter.

 

“Vietnam should continue its efforts to ensure a better understanding of its policy stance by the public at large, supported by greater and timely availability of information and statistics. This applies not only to the Government but also to the corporate sector. In order to promote better corporate governance of both public and private enterprises, quality and timeliness of information to be made available to the owners or shareholders and potential future investors will be the key,” added Mr Konishi.

 

It is specifically noted that the two laws approved by the National Assembly in June 2010 - a new Law on the State Bank of Vietnam (SBV) and a Credit Institutions Law - together with various legal documents issued by SBV and other agencies, mark important progress in strengthening the framework for monetary policy implementation and safeguarding banking system stability.

 

(CPV)