Vietnam - Vietnam’s efforts to cope with crisis highlighted

International experts and donors praised the Vietnamese government’s efforts to cope with crisis, inflation and recession at the Consultation Meeting with Development Partners on Vietnam’s Macro-Economic Situation in Hanoi on September 6.

At the meeting, many participants said that the government’s Resolution 11/CP on basic solutions to control inflation, stabilise the macro-economy and ensure social welfare have helped the nation gain positive results in its socio-economic development in the context of global economic difficulties due to impacts of crisis and recession.

World Bank country director in Vietnam Victoria Kwakwa said that continuing to effectively implement the Resolution would help Vietnam maintain and balance its development target and rational growth rate as well as ensure social welfare.

According to Kwakwa, Vietnam’s considerable growth rate of 5.4 per cent in the first quarter and 5.7 per cent in the second quarter, a strong increase in exports, a stable foreign exchange rate and increasing foreign reserves will be a basis for Vietnam to gain a higher growth rate in 2012 and in following years.

However, she said, the high inflation rate, new pressures on foreign exchange rates and high lending interest rates are issues that Vietnam needs to consider, and develop effective solutions to gradually solve these issues.

She also suggested Vietnam further increase transparency in budget collection and spending, collect and publicise comprehensive information on businesses’ debt and pay due attention to the dissemination of macro-economic management policies.

Benedict Bingham, senior representative of the International Monetary Fund (IMF) in Vietnam warned that the crisis, recession, and public debts will continue to leave a strong impact on economies worldwide, including Vietnam.

He recommended Vietnam further restructure its economy in a sustainable and effective direction and ensure the sustainability of public debts and the stability of Vietnamese dong, and to avoid bad debt.

Director of the Asian Development Bank (ADB) Tomoyuki Kimura suggested Vietnam better manage public investment and speed up the reform of businesses, especially state-owned enterprises.

Meanwhile, the ambassadors of Japan , Australia and the Republic of Korea in Vietnam proposed Vietnam bring more credits to agricultural development and consider agriculture as a strength and a foundation of the economy.

The country should increase its investment in resources in industry, remove difficulties for businesses, especially small and medium-sized enterprises, and consolidate foreign investors’ confidence, they said.

International experts, donors and ambassadors also pledged to continue to cooperate and stand side by side with Vietnam in its socio-economic development.

For his part, Prime Minister Nguyen Tan Dung praised donors and the practical opinions of experts and donors, saying that they will actively contribute to Vietnam ’s macro-economic management and its socio-economic development.

The PM took the occasion to affirm that the Vietnamese government is determined to implement the Resolution with priorities given to inflation control and macroeconomic stabilisation, including bring the inflation rate of 18 per cent in 2011 to a single digit rate in 2012 and maintain a growth rate of 6 per cent.

Vietnam is focusing on agricultural production, small and medium-sized enterprises and facilitating exports while ensuring social welfare for its people, he said.

Dung said the Vietnamese government is well aware of the results and difficulties of the country’s economy and has determined to sustainably develop its resources.

He expressed his hope to continue receiving practical support and assistance from international experts and donors in policy consultation and resource assistance.

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