IMF upbeat on Vietnam’s growth

Anoop Singh, regional director for the Asia-Pacific, told reporters at a press briefing in Hanoi on Monday that the international lender regarded highly of Vietnam’s growth given what the country has achieved over the past time.

Vietnam’s economic growth will be around 6% under the fund’s macroeconomic forecast, but “with this omentum, the growth could even hit 8%,” Singh said on the sidelines of an international conference titled “Post-Crisis Growth and Poverty Reduction in Developing Countries” in Hanoi. The conference, jointly organized by IMF and the State Bank of Vietnam, was attended by 140 delegates from across Asia and Africa.
“Poverty reduction in Vietnam over the past decade is much better than many other countries in Asia…, and it is quite suitable to presume even higher growth for Vietnam, he said.

IMF officials also spoke highly of the relation between Vietnam and the international lender.
“I am pleased and happy about the excellent relations between IMF and Vietnam,” noted John Lipsky, first vice president of IMF.
“Vietnam’s public debt is still lower than in many other countries, and we are not worried,” he added.
However, IMF officials mentioned great challenges ahead for Vietnam, including inflation, the inadequate infrastructure, as well as the widening gap of income between the rich and the poor.

To be considered emerging markets, developing countries in Asia need to ensure health growth on the basis of macro-economic stability, invest more in the infrastructure for sustained growth, prioritize structural reform to improve competitiveness, and keep budgetary deficit under control, Lipsky said.

Speaking at the press briefing, deputy governor of the State Bank of Vietnam Nguyen Van Binh noted that Vietnam had successfully implemented financial and fiscal measures in 2008-09, which had been applauded by international experts.
“However, in order to reduce budget deficit, the mobilization of funds from the public as well as from overseas markets is important,” Binh said.
Vietnam has issued sovereign bonds on international markets early this year, and will have a new programs on attracting local funds via bond issues soon, he said.

The banker also appreciated the relation with IMF, which has provided huge funds for Vietnam in the right time.
“In the past, we have been given big and necessary loans from IMF. However, Vietnam still has not utilized such sums and still keeps the money on its account of foreign reserve,” Binh revealed.
Binh added that Vietnam’s demand for consultancy as well as financial support from IMF will rise in the coming time, and expected that the fund would work side by side with developing countries for macro-economic stability and development.