Vietnam Central Bank Gears up to Tame Inflation

The State Bank of Vietnam (SBV) will take four anti-inflation measures to limit the growth of credit and total money supply to below 30 per cent by the end of this year, said Governor Nguyen Van Giau.

 

During the National Assembly meeting May 30, Giau said the SBV will also flexibly control exchange rates and interest rates in line with the market principle and with supply and demand, boost supervision of the monetary market and establish a swift information system for timely intervention, and foster inspection of bank’s operations.

 

The implementation of price-controlling measures has initially helped curb inflation, the SBV said.

Total money supply increased 3.73 per cent in the first five months of this year, compared with the 17.57 per cent growth in the same period last year. Credit growth tends to fall, despite high level of 18.4 per cent at present.

 

In the coming time, the SBV will strictly implement the statistics, forecast, inspection and supervision of the monetary market to ensure that the policy-making keeps pace with developments of the economy and gain high efficiency.

 

The SBV has received applications for 25 new domestic joint stock commercial banks, and for 33 branches of foreign banks and wholly foreign-invested banks in Vietnam since 2006. It has granted licenses for three branches of foreign banks and two domestic banks.

 

Vietnam has five state-owned commercial banks, six joint venture banks, 36 joint stock commercial banks, 44 branches of foreign banks, 10 financial companies, 13 financial leasing companies and 998 people’s credit funds at the end of May. (VNA)