Vietnam's Inflation Estimated at Least 22 per cent This Year

The government forecast that the inflation rate will rise at least 22 per cent this year after having risen 15.69 per cent in the first five months, Vo Hong Phuc, Minister of Planning and Investment, answered the NA deputies at the session May 30.

 

However, the inflation may rise at a faster pace if the government has weak management, Phuc said.

 

Phuc attributed the rising inflation to the total money supply in 2007, which increased 43.7 per cent on year and high credit growth of 53.88 per cent on year, respectively, compared with 20 per cent and 22 per cent targeted by IMF for Vietnam.

 

Bank loan growth was rising by 4 and 4.5 times against GDP growth.

 

The minister reiterated that fighting inflation is the government’s number one target this year.

 

The government has lowered the economic growth target to 6.5 per cent-7 per cent from the initial target of 8.5 per cent-9 per cent, because it predicted that the agriculture sector will grow at 3 per cent and the industry and service sectors both at 8 per cent this year. (VTV)