The International Monetary Fund (IMF) has made positive assessments on Vietnam ’s macroeconomic situation as well as the policy management of the State Bank of Vietnam (SBV) over the past time.
A press release, posted after IMF concluded the annual consultation mission to Vietnam in late April, said that Vietnam ’s macro-economy has shown signs of recovery mainly thanks to strong exports.
It pointed out that the country’s headline inflation reduced from double digits to about 7 percent year-on-year in March, while calm has return to the financial market with the SBV’s efforts to provide liquidity and the merger of several small, weak banks.
The achievements gained during the macroeconomic and financial market stabilisation in 2012 helped improve the credibility of the SBV with market participants, IMF affirmed, noting that while headline inflation has come down, core inflation (excluding basic food and energy) still remains high, limiting the room for interest rate cut.
The fund suggested the Vietnamese Government accelerate reforms in the banking and State-owned enterprises sectors to reduce vulnerabilities and restore Vietnam to a higher, sound and sustainable growth path.
The recent stabilisation gains need to be consolidated through appropriate macroeconomic policies to further bolster international reserves and fiscal buffers, it said.
At a recent interview granted to the Vietnam Television, the IMF Mission Chief Alfred Schipke also affirmed that Vietnam’s economic policy has rather succeeded in restoring macroeconomic stability over the past more than one year, which is reflected in the strong decline of headline inflation and the increasing trust in domestic currency.
Regarding the gold market, the IMF mission said that the SBV’s recent moves to manage the gold market, including the rejection of the monetary intermediary role of gold, help reduce fluctuations in the financial sector caused by gold speculation.
It also agreed with the central bank’s measures to ban other banks from receiving deposits in gold, saying that it is for the benefit of financial stabilisation.-VNA
A press release, posted after IMF concluded the annual consultation mission to Vietnam in late April, said that Vietnam ’s macro-economy has shown signs of recovery mainly thanks to strong exports.
It pointed out that the country’s headline inflation reduced from double digits to about 7 percent year-on-year in March, while calm has return to the financial market with the SBV’s efforts to provide liquidity and the merger of several small, weak banks.
The achievements gained during the macroeconomic and financial market stabilisation in 2012 helped improve the credibility of the SBV with market participants, IMF affirmed, noting that while headline inflation has come down, core inflation (excluding basic food and energy) still remains high, limiting the room for interest rate cut.
The fund suggested the Vietnamese Government accelerate reforms in the banking and State-owned enterprises sectors to reduce vulnerabilities and restore Vietnam to a higher, sound and sustainable growth path.
The recent stabilisation gains need to be consolidated through appropriate macroeconomic policies to further bolster international reserves and fiscal buffers, it said.
At a recent interview granted to the Vietnam Television, the IMF Mission Chief Alfred Schipke also affirmed that Vietnam’s economic policy has rather succeeded in restoring macroeconomic stability over the past more than one year, which is reflected in the strong decline of headline inflation and the increasing trust in domestic currency.
Regarding the gold market, the IMF mission said that the SBV’s recent moves to manage the gold market, including the rejection of the monetary intermediary role of gold, help reduce fluctuations in the financial sector caused by gold speculation.
It also agreed with the central bank’s measures to ban other banks from receiving deposits in gold, saying that it is for the benefit of financial stabilisation.-VNA
