ID :
27616
Fri, 10/31/2008 - 00:17
Auther :
Shortlink :
http://m.oananews.org//node/27616
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Minister says its too early to make a call over deflation
Hanoi (VNA) - Planning and Investment Minister Vo Hong Phuc stated it is
too early to say whether or not Vietnam 's economy will suffer from
deflation, which is predicted to occur in 2009, despite warnings about the
situation.
On the sidelines of the on-going National Assembly session on Oct. 29, the
minister said there are many factors that can result in deflation, such as
the consumer price index (CPI), business' production power, people's
purchasing power and market consumption levels.
The country experienced a fall in CPI during October, mainly because of the
sudden decrease in prices of a number of commodities in the world market,
with the price of crude oil plummeting from 147 USD per barrel in July to
its current price of just over 60 USD per barrel.
In order to reach an accurate conclusion regarding the country's economy,
close watch should be kept on levels of purchasing power and production in
the next two months, he said.
The Government, however, still needs to take measures to anticipate
deflation, the minister added.
Speaking about Vietnam's high growth rate target in the context of the
global economic downturn and other regional countries' avoidance of a
negative growth rate, the minister said the country's financial and monetary
markets, which are not yet fully integrated, will not suffer as much as
other countries' markets, with deeper levels of integration.
Vietnam will also not be affected by a decrease in exports, as the
majority of the country's main export items are essential goods, such as
garments, textile products, farm produce and food, Minister Phuc said.
To reduce its dependence on exports, the minster revealed that the country
will place greater importance on focusing on the domestic market in order to
stimulate local demand.
In addition, exports to countries that are not bearing the brunt of the
impact of the global economic recession, such as other Southeast Asian
countries, will be monitored more rigorously.-Enditem
too early to say whether or not Vietnam 's economy will suffer from
deflation, which is predicted to occur in 2009, despite warnings about the
situation.
On the sidelines of the on-going National Assembly session on Oct. 29, the
minister said there are many factors that can result in deflation, such as
the consumer price index (CPI), business' production power, people's
purchasing power and market consumption levels.
The country experienced a fall in CPI during October, mainly because of the
sudden decrease in prices of a number of commodities in the world market,
with the price of crude oil plummeting from 147 USD per barrel in July to
its current price of just over 60 USD per barrel.
In order to reach an accurate conclusion regarding the country's economy,
close watch should be kept on levels of purchasing power and production in
the next two months, he said.
The Government, however, still needs to take measures to anticipate
deflation, the minister added.
Speaking about Vietnam's high growth rate target in the context of the
global economic downturn and other regional countries' avoidance of a
negative growth rate, the minister said the country's financial and monetary
markets, which are not yet fully integrated, will not suffer as much as
other countries' markets, with deeper levels of integration.
Vietnam will also not be affected by a decrease in exports, as the
majority of the country's main export items are essential goods, such as
garments, textile products, farm produce and food, Minister Phuc said.
To reduce its dependence on exports, the minster revealed that the country
will place greater importance on focusing on the domestic market in order to
stimulate local demand.
In addition, exports to countries that are not bearing the brunt of the
impact of the global economic recession, such as other Southeast Asian
countries, will be monitored more rigorously.-Enditem
