Monetary Policy

Vietnam is among five economies removed from the monitoring list for "having met only one out of three criteria for two consecutive reports."

Monetary policy should be maneuvered in a flexible and active manner to ensure sustainable growth and stability of both monetary and foreign-exchange markets, said the Party chief Nguyen Phu Trong.

The central bank would continue to monitor the economic performance to adjust monetary policy accordingly, with the aim of keeping the inflation rate around 4% for this year.

Easing monetary and fiscal policies in combination with institutional reforms are the way for Vietnam to ensure sustainable and rapid economic growth amid global uncertainties.

Credit has not been effectively channeled into fields that contribute directly to economic growth and ultimately social prosperity, but to risky fields such as real estate, stock market or cryptocurrencies.

Further fiscal and monetary policy interventions may be needed to support recovery of private demand, asserted the World Bank.

The development of a Covid-19 vaccine is necessary for the Vietnam's economy to return to its pre-Covid-19 status.

Using monetary policy to stimulate demand in the case of Vietnam could cause inflation, said an economist.

Vietnam would continue to pursue a flexible monetary policy and affirms it has no intention of seeking unfair trade gains.

There has been a positive shift in the credit structure that provides strong support to economic growth, with a major part of outstanding loans channeled to priority fields.