Business
Vietnam to keep close watch on China economy
The National Financial Supervisory Commission (NFSC) has proposed that a close watch be kept on China`s moves in its socio-economic policies in order to react in an appropriate manner.
The proposal was raised in the recent report of the NFSC on the country's economic situation in the first eight months of this year.
The commission in the report said that Vietnam should not make hefty adjustments to existing policies and socio-economic plans at the moment with no huge yuan depreciation forecast during the rest of the year.
The NFSC predicted that the country's economic growth will fulfill and even exceed the target of 6.2 percent this year.
Adjustments in foreign exchange rates in August will cause a modest increase in inflation, of around 0.2 percentage points, the NFSC said, keeping its forecast for inflation this year at below 3 percent.
The commission also said that a close watch should be placed on daily fluctuations of the global financial, currency and commodities markets.
Given the huge scale of the world's financial markets and the openness of the Vietnamese market, the market sentiment is of great importance and herd-psychology reactions might go beyond the government's controls, the commission warned. As a result, policy-makers should raise different scenarios to avoid passiveness, it stressed.
In addition, proper communication also plays a crucial role in maintaining the market confidence and orienting the market in line with the policy targets, the commission noted, adding that policies must be transparent and consistent.
At the meeting early this week, the Ministry of Planning and Investment forecast economic growth this year at 6.4 percent.
The commission in the report said that Vietnam should not make hefty adjustments to existing policies and socio-economic plans at the moment with no huge yuan depreciation forecast during the rest of the year.
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Adjustments in foreign exchange rates in August will cause a modest increase in inflation, of around 0.2 percentage points, the NFSC said, keeping its forecast for inflation this year at below 3 percent.
The commission also said that a close watch should be placed on daily fluctuations of the global financial, currency and commodities markets.
Given the huge scale of the world's financial markets and the openness of the Vietnamese market, the market sentiment is of great importance and herd-psychology reactions might go beyond the government's controls, the commission warned. As a result, policy-makers should raise different scenarios to avoid passiveness, it stressed.
In addition, proper communication also plays a crucial role in maintaining the market confidence and orienting the market in line with the policy targets, the commission noted, adding that policies must be transparent and consistent.
At the meeting early this week, the Ministry of Planning and Investment forecast economic growth this year at 6.4 percent.
