Vietnam to Maintain Cautious Fiscal Policy
The Vietnamese Government will continue following a cautious fiscal policy in 2006-2010, Finance Minister Vu Van Ninh said at the 2nd annual Vietnam Investment Forum in Hanoi Monday.
Vietnam will keep the rate of gross domestic product (GDP) mobilized by the state budget at 21 per cent or 22 per cent, while the budget deficit will be kept at only 3 per cent and the national debt under 5 per cent of the GDP, he said.
Regarding the capital market, Ninh said the market has developed strongly in recent years.
By 2006, more than 200 joint stock companies, with market capitalization of US$14 billion, or 22.4 per cent of GDP, had been listed at two securities trading centers, in addition to more than 400 listed bonds worth US$8 billion.
Vietnam will continue to develop the capital market, raising total capital demand to US$140 billion in 2006-2010, he said.
The country will complete a comprehensive legal system and increase state agency management over the capital market to ensure consistent market development, maintain macro-economic stability, as well as prevent future crises.
The two-day forum is co-organized by Euromoney Conferences and the State Capital Investment Corporation (SCIC), with participation of more than 1,100 delegates from 36 countries and territories around the world.
Under the theme “Financing Growth - Asia’s Next Tiger”, the forum is expected to help international financiers access the latest information on Vietnam’s economic development. Government officials and international financiers will debate Vietnam’s macro-economic outlook, and the opportunities and challenges posed by World Trade Organization membership, as well as measures to develop the Vietnamese capital market. (VNA)
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