According to Ernst & Young, the inflation rate and GDP growth of the country may come out below the target rates.
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| Vietnam unlikely to reach GDP, inflation target |
Ernst and Young, one of the "Big Four" accountancy firms stated that, given the low GDP growth of 5.4% in 2011, Vietnam is not likely to achieve its 6-6.5% goal for 2012.
The firm reasoned that Vietnam will encounter many difficulties, including high-risk restructuring of state-owned enterprises, as well as the banking system. The Government also seeks to mobilise capital in gold and foreign currencies in the wake of rising inflation.
Inflation has cooled from the record highs of August, 2011, but the CPI still increased by 20%. This has adversely affected the goals of the Government's economic policy. Boosting economic growth and taming inflation seem to be at odds.
However, the firm added that the economic outlook for Vietnam is bright, with a forecast average growth of 6%, in medium-term, which should increase into 2013. Next year inflation is expected to drop below 10%, while export growth will decrease the trade deficit.