Inflation tests stability in Vietnam

[xizhimen]

Inflation tests stability in Vietnam

Southeast Asia
Jan 26, 2012
By Roberto Tofani

HANOI - Buffeted by persistent double-digit inflation, slowing economic growth and rising worker unrest, Vietnam's economic reforms are at risk of coming undone. While Prime Minister Nguyen Tan Dung emphasized this month the need to maintain ''quick and sustainable'' growth, questions are rising whether Vietnam can have both amid global economic and financial turbulence.

Consumer prices were up over 17% year-on-year in January, marking one of the highest inflation rates in emerging Asia. At the same time, once rapid economic growth is tapering off, falling to 5.9% last year from 6.8% in 2010. While other regional countries have lowered interest rates to spur growth and cushion their economies from an extended slowdown in the US and Europe, high inflation means Vietnam's policymakers have less space tooosen monetary policy. Vietnam's benchmark interest rate is now 15%.

Pham Chi Lan, a Vietnam economy expert, noted in a recent academic article that the government invested 253 trillion dong (US$12.3 billion) in just 22 public enterprises last year in a bid to pump prime the economy. That was three times more than the 81 trillion dong cut in state spending announced but never implemented by the National Assembly, according to Lan.

Meanwhile, the central bank estimates overall credit grew by 7% last year; independent analysts believe that figure was considerably higher. While the government ramped up spending, the currency, the dong, fell against the US dollar, dipping by more than 7% at a time many other regional currencies appreciated against the greenback. Central bank governor Nguyen Van Binh has warned that the dong could weaken further in 2012.

Asia Times Online :: Inflation tests stability in Vietnam

 

[xizhimen]

off topic reported

 

[NiceGuy]

2012 Looks good for Vietnam's Economy
Updated at: 08:06 03/01/2012


Vietnam needs to attract more FDI projects that involve the high-tech sector
(VEN) - Despite gloomy forecasts about the East Asian as well as the world economy in 2012 by Goldman Sachs, the US based investment banking and securities firm, and the Asia Development Bank (ADB), most Vietnamese political leaders and businesspeople remain optimistic about the financial prospects in 2012.

It is not thanks to Vietnamese strong beliefs in the most severe circumstances but to their experiences over the past years, of which the "Intangible experiences" is of great importance.
Probably the most daunting tasks that lies before the nation's economy are that of curbing inflation, stabilizing the macro-economy and ensuring social security. The National Assembly has set a target of reducing inflation from 18 percent, the ratio of 2011, to below 10 percent next year. In fact, by the end of September 2011, inflation had climbed to 22.18 percent but significantly declined in the last three months. To fulfill the goal of keeping inflation below 10 percent, Vietnam State administrations are taking steps to apply comprehensive measures for controlling gold prices, exchange rates, limit the trade deficit and grow the production sectors, particularly in the area of food production.
..........
The development of Vietnam's economy in 2012 will depend on the results of its renovation policies and the effectiveness of the resolutions that are passed./

VEN - 2012 Looks good for Vietnam's Economy
in 2012, our inflation rate will be about 10 %

 

[xizhimen]

10 % inflation in other countries will be termed as a run away inflation,in Vietnam will be lauded as a great achievement.they are so used to their current 20% inflation.

 

[xizhimen]

is average income increase rate is over 20% in Vietnam?if not,the standard of living for Vietnamese is deteriorating every passing day.

 

[NiceGuy]

is average income increase rate is over 20% in Vietnam?if not,the standard of living for Vietnamese is deteriorating every passing day.

life is still better than during Vn war or during VN-China war , and our oil price, foods price still lower than China

 

[SinoChallenger]

Here is proof high inflation in a country is correlated with PDF members from that country's IQ:

life is still better than during Vn war or during VN-China war , and our oil price, foods price still lower than China

Vietnam's dong is getting weaker and weaker..... better value for Chinese and Taiwanese gentlemen shoppers in Vietnam.

 

[NiceGuy]

Here is proof high inflation in a country is correlated with PDF members from that country's IQ:




Vietnam's dong is getting weaker and weaker..... better value for Chinese and Taiwanese gentlemen shoppers in Vietnam.

hehe, solve your oil shortage problem first before thinking about our Dong.

 

[xizhimen]

Here is proof high inflation in a country is correlated with PDF members from that country's IQ:




Vietnam's dong is getting weaker and weaker..... better value for Chinese and Taiwanese gentlemen shoppers in Vietnam.

their economy is totally in China's hands,we can easily break their tiny tiny....economy.

 

[SinoChallenger]

their economy is totally in China's hands,we can easily break their tiny tiny....economy.

Let's go to Vietnam with our powerful RMB. It's so cheap now. Then we can show the ladies our....... RMB.

 

[Abhishek_]

Let's go to Vietnam with our powerful RMB. It's so cheap now. Then we can show the ladies our....... RMB.

right, because chinese women drool over USD ehh? the chinese boys are left with no other options

 

[SinoChallenger]

right, because chinese women drool over USD ehh? the chinese boys are left with no other options

Feeling butthurt after pro-Chinese forces shattered your treasured DPP dreams of independence forever?

 

[Abhishek_]

Feeling butthurt after pro-Chinese forces shattered your treasured DPP dreams of independence forever?

poor attempt at deflection, try again SC

 

[xizhimen]

Let's go to Vietnam with our powerful RMB. It's so cheap now. Then we can show the ladies our....... RMB.

only Chinese farmers buy them,pay the price less than a donkey,i m not interested.

 

[EastSea]

10 % inflation in other countries will be termed as a run away inflation,in Vietnam will be lauded as a great achievement.they are so used to their current 20% inflation.

In china has habit propaganda making "pink" for every thing, state statistics is always modifying or editing.