>> ADB: Vietnam must avoid “average-income trap”
>> Inflation reaches three-year high in April
>> Economist: Recent fiscal policies may effectively curb inflation
The Government of Vietnam is making efforts to keep inflation at last year’s level of 11.75%, said Vo Hong Phuc, Minister of Planning and Investment.
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| Minister Vo Hong Phuc at the summit |
Speaking at the Vietnam Business Summit, part of the ongoing 44th Annual ADB Meeting in Hanoi, Phuc said this target would not be easy to meet because of the complex economic environment, both domestically and globallly.
Vietnam’s inflation in the first four months of this year increased by 9.64% against December 1, 2010, Phuc said. He added that the top priority of local government this year is to curb inflation, not economic growth.
He forecast that this year the country’s GDP will grow by 6.5%, lower than the target of between 7% and 7.5%.
Explaining the possibility for Vietnam’s failure to meet its goal on inflation of 7% in 2011 set by the National Assembly, Nguyen Van Giau, Governor of the State Bank of Vietnam, said that the country is not in a unique situation. He said that many nations are struggling with increasing prices on the global market, adding that other factors include political turmoil in Africa and natural disasters in Japan.
According to Dr Le Xuan Nghia, Vice Chairman of the National Financial Supervisory Commission (NFSC), April could be the last month to see rising inflation if the State Bank of Vietnam remains steadfast in its tighter monitary policies. Nghia added that these policies restricting the money supply could begin showing results in May.
