world financial and economic crisis

Hanoi (VNA) – Vietnam has timely taken synchronous measures to mitigate
adverse impacts from the world financial and economic crisis on its national
economy, said an article on China International Business magazine on July 14.

The article brings readers back to early 2008, when Vietnam faced rapidly
increasing inflation rates and enlarging foreign trade deficits.

Against the backdrop, the government of Vietnam on March 2008 firmly took a
series of policies to stabilise the macro-economy and control inflation, focusing on
the eight monetary tightening and public investment cut measures.

Just three months after the policies were adopted, the journal said, Vietnam
started to see inflation rates step by step reduced and trade deficit narrowed.

Foreign direct investment (FDI) inflow in the country remained stable, showing
foreign investors’ confidence in the long-term business outlook of the economy, it
added.

In addition, the State Bank of Vietnam has cut the benchmark interest rate for
five times to 8.5 percent from 14 percent and widened the foreign exchange trading
band to stimulate the monetary market.

Vietnam ’s financial and monetary policies have been adjusted to be more
flexible in responding to the global turbulences, the magazine said.

The country also introduced five policies that are aimed at boosting production and
export activities, encouraging domestic investment and consumption, and ensuring
social welfare.

The article noted, however, that an absence of close monetary ties with developed
economies is a major factor behind Vietnam ’s rather quick recovery from the
global economic crisis.- Enditem