IMF: Vietnam Should Carefully Consider US$6 Bln Stimulus Packages
International Monetary Fund has cautioned that Vietnam should take the US$6 billion economic-stimulus package carefully into consideration as it will weaken its external status in regional arena, Saigon Liberation newspaper said, citing IMF’s team.
IFM’s team released the warning after one week of working Vietnam, and the US$6 billion package will impede the government of Vietnam in pursuing to loosen the monetary and fiscal policies to boost growth.
"Any measures by local authorities to stimulate demand are reasonable in global downturn and most vulnerable groups should be prioritized to shield against recession," Benedict Bingham, senior resident representative from the IMF noted.
"The US$6 billion economic-stimulus package will weaken Vietnam's status unexpectedly as the Asean country will not have other foreign aids,” he said.
However, the IMF teal highlighted the medium-term outlook of Vietnam if the government maintains healthy policies and continues reforms to sharpen competitiveness.
At the CG meeting held in early Dec, international donors pledged US$5.014 billion in ODA for next year, down 7.2 per cent on year as Japan halted new ODA due to corruption scam relating PCI scandal.
IMF has cut forecast of Vietnam's GDP growth to 5 per cent next year as the global economy is worsening, however, it is upbeat that inflation will be reined to single-digit levels by the end of 2009. (Saigon Liberation)
Vietnamese
