World Lag May Hurt Vietnam
The Asian Development Bank stated that the global financial crisis might affect Vietnam's rapid economic growth this year (For more information on Vietnam, read Vietnam - Your destination to an exotic experience ).
In a news conference in Hanoi, ADB Head Haruhiko Kuroda said that the global crisis might cause a mild slowdown to 8 percent from 8.5 percent in 2007. However, he claimed that this could be productive, or at least useful, for the country's economy as it contains inflationary pressures.
In other emerging markets in Asia, inflation is above the trend, hitting 14.1 percent in January this year, the highest since November 1995. According to economists, inflation is driven by the prices of commodities such as food, oil, housing and transportation.
Kuroda claimed that the monetary policy should be further tightened appropriately to contain inflation. He added that he expected inflation in Vietnam for the entire year to fall from 8 percent to 7 percent this year. Previously, the ADB made a 6.8 percent inflation forecast for 2008.
Since February 1, the State Bank of Vietnam has already tightened monetary policy by issuing compulsory dong treasury notes that are worth $1.3 billion at a 7.8 percent coupon. It will be effective March 17. If you've been updated upon reading this article, you'll surely be interested in learning how to make money during a recession.
on 2008-10-09 at 22:29:24
Hoa, I admire your trust for Vietnam, but no Asian country will come out of this economic crisis scot-free. Almost every nation is tied to other nations because of the global economy. Every nation imports and exports to some degree today. The reason we're seeing this domino effect is because national economies can't exist without the influence of foreign economies any more.on 2008-10-02 at 23:09:35
Vietnam will always triumph. The Vietnamese are a veru resourceful and hard-working people and they have risen from the ashes before. They will do so again.on 2008-09-19 at 00:49:46
It really doesn't matter how great the global financial crisis will be, it won't hurt Vietnam that much. Vietnam is fast becoming one of the leading ASEAN members and its policies have been sound in dealing with financial concerns.