PM meets with ministries to discuss events around the world over recent days.
Prime Minister Nguyen Tan Dung and ministries held a meeting on August 26 to assess the effect of economic fluctuations around the world on Vietnam and to discuss policies and solutions to maintain macro-economic stability to achieve or exceed targets set for socio-economic development.
The meeting focused on issues such as falling global oil prices, abnormal movements in stock markets around the world, adjustments to international capital flows after China devalued the Renminbi, and adjustments to exchange rate policies in many countries. The global economy is showing some worrying signs, with growth in emerging economies declining, including in China, the second-largest economy in the world.
Though acknowledging the issues, the PM and ministries remain optimistic about the development of Vietnam’s economy.
Regarding falling crude oil prices, which were forecast at the beginning of the year, ministries and agencies reported there is a timely response in place. The Ministry of Finance (MoF) confirmed that, with current oil prices, budget revenues will still exceed plans by 8 per cent.
Regarding Vietnam’s stock market, the State Securities Commission under the MoF pointed out that the cause is mainly psychological factors. The market will soon recover and continue to attract new money flows.
In exchange rates and interest rates, State Bank of Vietnam Governor Nguyen Van Binh said the exchange rate, which was pushed up in recent days, was also the result of psychological factors. “We adjusted the exchange rate relatively highly and there is now no reason to continue devaluing the Vietnam dong,” he said. “The remaining problem is market confidence.”
The PM said that, overall, Vietnam has good control over macroeconomic factors, growth indicators, inflation, budget revenues, overspending, and import-export activities. “There are no signs of a major impact on macroeconomic factors or any pressure for us to adjust targets,” he added.
The PM appreciated that solutions had been taken promptly. However, unpredictable movements in the global economy require Vietnam continue to closely monitor and fully analyze the situation in order to adopt solutions and minimize any negative impacts, he said.