Vietnamese fiscal and monetary policies will likely be more maneuverable in 2012, as the country’s macroeconomic situation is stabilsing, said an economist who is also a member of the National Assembly’s Economics Committee. “Inflation in 2012 will not exceed 10 percent, and in my view, it will stand at 9 percent at most. Without future money pumping, it may be as low as around 5-6 percent for 2012”, he said at the "Macroeconomic and the Stock Market in 2012" event held by Kim Eng Vietnam Securities Co. The main difficulty for Vietnam this year is far different from that of 2011, namely the vicious circle of high-rise inflation, which peaked at about 23 percent in August, and the devaluation of Vietnam dong. Such economic constraints, resulting in Resolution 11, limited the maneuverability of both fiscal and financial policies in 2011. At the start of 2011, amid the feasible return of high inflation that had already dampened business sentiments … [Read more...] about Gov’t to have more fiscal, monetary maneuverability in 2012
Fiscal monetary policy
What is your view on the monetary policy during the 2011-2015 period? The monetary policy during the 2011-2015 period achieved positive results. Inflation was curbed and maintained at a low level, contributing to ensuring macroeconomic stability and better living conditions. The restructuring of commercial banks and credit institutions was implemented following the schedule, while liquidity and credit quality improved. In addition, bad debts declined from 17 percent to 2.55 percent.What are difficulties for monetary management during the 2016-2020 period? The economic situation is forecast to be more complex during the 2016-2020 period. The market opening will lead to fiercer competition. If the economy becomes unstable, credit quality will be affected. Vietnam may also face risks of high inflation during the 2016-2020 period. In addition to positive factors, the consumer price index (CPI) witnessed a fall due to a reduction in global crude oil prices. However in a context where the … [Read more...] about Monetary policy stability faces challenges
Deputy Minister of Construction, Nguyen Tran Nam, speaks with DTiNews about rising prices and the domestic real estate market. Deputy Minister Nguyen Tran Nam Have price hikes in petroleum and electricity impacted the real estate market? Price increases will inevitably impact construction projects. Construction materials are greatly affected by the transport costs. Real estate prices will increase along with this trend. This is unavoidable. However, the important thing is there is still a strong realty market and people still buy and sell. Has the rise in prices of construction materials led to financial difficulties which have slowed down construction projects? Basically, construction materials remain abundant. Most construction materials are locally made, instead of being imported. Due to the material price hikes, customers will have to accept adjustments in the price of real estate. The rise in the price of construction materials is inescapable. So the real estate market … [Read more...] about Realty market exciting despite tightening monetary policy
SBV Deputy Governor Nguyen Thi Hong What did the banking sector do to complete the 2015 credit growth target? The SBV set out the credit growth target of 13-15 percent in 2015. Total means of payments increased by 13.55 percent by December 21, 2015 compared to the same period in 2014, while capital raise increased by 13.59 percent. Credit growth could reach an estimated 18 percent in 2015. Capital flows continued to be reasonably allocated, focusing on trading and production activities, especially in the government’s priority sectors, contributing to bringing practical effectiveness for the economy. The SBV implemented a flexible adjustment of monetary policy, contributing to improving the position of the Vietnamese dong in 2015. The SBV has also deployed solutions in order to promote monetary management, credit growth and banking activities since the beginning of 2015 and has created favorable conditions for enterprises, cooperatives and households in accessing capital, … [Read more...] about 2015 monetary policy: Improving position of Vietnamese dong
The consumer price index jumped by 2.22 per cent in June and 4.6 per cent from a year earlier, a seven-year high, the General Statistics Office (GSO) reported. — Photo thoibaonganhang.vn The rest of this year is likely to be a difficult period for the economy meaning challenges for the Government in achieving the targets set for the year. The problems include a weakening of the đồng against the dollar and rising inflation, interest rates and public debt, and the Government will be walking a tightrope in terms of monetary policy. The consumer price index jumped by 2.22 per cent in June and 4.6 per cent from a year earlier, a seven-year high, the General Statistics Office (GSO) reported. Inflation in the first six months of the year was up to 3.29 per cent. GSO experts attributed the sharp increase in inflation in recent months to the rise in prices of several major products and services. Of 11 major categories of goods and services, nine saw prices … [Read more...] about Trillion đồng question: to tighten monetary policy or not?