After sending a consultative task force to Vietnam in March, the International Monetary Fund (IMF) said the Vietnamese Government’s macro-economy stabilising policies have started to yield high effect, with quickly decreasing inflation, trade deficit and pressure on VND.
IMF welcomed the State Bank of Vietnam, the central bank, which has recently increased foreign reserves considerably. The fund also supported the central bank’s policy of limiting the VND devaluation at 2-3% till the year-end.
IMF highly appreciated the central bank’s taking measures to control risks arising from over-lending of some commercial banks and poorly-performing banks. According to the fund, it takes time to eliminate the risks as well as improve their governance capacity.
Regarding Vietnam’s economy outlook in 2012, IMF forecast the inflation rate will decrease to one-digit figure, though GDP growth slows down to below 6%. Foreign reserves will continue increase fairly high, and fiscal deficit will gradually decline to 2.25% of GDP by 2015.
IMF said policymakers should take cautious approaches, including limiting the fiscal expansion this year to control inflation better, stabilize macro-economy, assist monetary market and increase foreign reserves quickly.