IMF positively evaluates Vietnam macro-economy

Vietnam has maintained macroeconomic stability, recorded good economic growth, and curbed inflation at a low level, creating a foundation for stronger development in the near future, the International Monetary Fund (IMF) evaluated.

At a meeting with Deputy Prime Minister Vuong Dinh Hue in Hanoi on April 22, Head of the IMF Article IV Mission Delegation John Nelmes said during more than two weeks of working in Vietnam, his delegation has made a preliminary evaluation on the country’s macro-economic situation, especially fiscal, monetary issues, and performance of banks and State businesses.

He highlighted the negative impacts of climate change in recent times as difficulties that Vietnam is facing and that they could affect the national economy.

Deputy Prime Minister Vuong Dinh Hue (R) receiving Head of the IMF Article IV Mission Delegation John Nelmes. Source: VGP

Deputy PM Hue said the Vietnamese Government will double its efforts to improve the business environment, increase the economy’s competitiveness, and address current shortcomings.

Vietnam will continue its management to ensure macroeconomic stability and curb inflation to below 5 percent in 2016 and the following years, while closely monitoring the market to adjust the monetary policies for stable exchange and interest rates, reasonable credit growth, and increasing foreign currency reserves.

The State budget overspending is expected to stand at 5 percent in 2016 and be lower over the next five years. Meanwhile, the public debt will be kept at a safe limit, and bad debts will be handled effectively, he said.

The Deputy PM hailed the outcomes of the working session between the State Bank of Vietnam and the IMF delegation, saying the IMF’s policy recommendations have been applied effectively in Vietnam.

The Vietnamese Party and Government persistently pursue the target of macroeconomic stability while focusing on growth quality and economic restructuring, especially reinforcing finance, handling bad debts, and restructuring the banking system, he said, adding that Vietnam hopes to receive more support from the IMF.