ADB President: Vietnam Needs to Tighten Fiscal, Monetary Policies

President of the Asian Development Bank Haruhiko Kuroda proposed that Vietnam should take tightened fiscal and monetary policies to curb galloping inflation.

 

Mr. Haruhiko Kuroda made his advice during a meeting with Governor of the State Bank of Vietnam Nguyen Van Giau on the occasion he arrived in Hanoi to att the Global Meeting on Emerging Markets.

 

The ADB president hailed eight measures being adopted by the government to tame inflation, which rocketed to 26.8 per cent on year in June.

 

He also favored the pegging dong to dollar by the central bank, which prevents dong from depreciating and causing more inflationary pressures.

 

Vietnam&rsquos economy expanded 6.5 per cent on year, the lowest growth rate in recently years, with slowing down trade deficit. To fulfill the GDP growth rate of 7 per cent this year, Vietnam will have to achieve GDP growth rate of 7.4 per cent in the second half this year, General Statistics Office Director Nguyen Van Hoa said.

 

A recent survey showed that up to 91.75 per cent of poor families are hut by soaring inflation as the Asean country has more than 70 per cent of farmers.

 

HSBC fore that Vietnam&rsquos GDP growth rate will be 6 per cent this year. (News)