IMF urges Vietnam to scrutinise stimulus plan

Hanoi (VNA) - The International Monetary Fund (IMF) has suggested that Vietnam
thoroughly consider its economic stimulus plan and give priorities to such
vulnerable groups as the business and banking sectors.

The IMF made the recommendation in a notice released on December 18, following a
week-long Vietnam visit by an IMF working mission led by Shogo Ishii, Assistant
Director of the IMF's Asia and Pacific Department.

The IMF forecasts that Vietnam 's economic growth rate will reach 6.25 percent in
2008 and may reduce to 5 percent next year due to the worsening global economic
environment, said IMF Senior Residential Representative in Vietnam Benedict Bingham.

Vietnam 's trade deficit is expected to go down in the following year but will
remain high, accounting for around 9 percent of GDP, he added.
The IMF experts also predicted the country's inflation rate to decrease to a
single-digit level by late 2009, leading to the government's loosened monetary and
financial policies. However, Vietnam 's position in the international arena is
not so strong compared to some regional countries, which may restrict the
government's capacity in pursuing those policies, they said.

The IMF mission, however, noted that Vietnam 's outlook remains positive given
that the government maintains sound policies and continues reforms to increase the
country's competitiveness.

Maintaining reforms in this difficult period is very important for Vietnam to
bolster investors' confidence and ensure a better position for the country when the
world escapes from the current economic recession, Benedict said in
conclusion.-Enditem