Foreing inflation may rise 8.5% - 10.5%

The authors offered two scenarios for Vietnam’s economy in 2010. The first scenario, low inflation at 8.5% and the economy can achieve growth at 6.3%. Second scenario, inflation is higher, at 10.5% and forecast growth may reach 6.8% - 6.9%.

The report said that monetary policy in 2010 need to be careful with inflation, but not so tight that need flexible hard to maintain liquidity for the economy to continue to increase the rates as appropriate to avoid freezing conditions in the market when the trade deficit increased the growing pressure. Stimulate economic policies should not continue to support interest rates and tax breaks that required export oriented industries more.