Hanoi-hosted ADB meeting focuses on inflation

The Asian Development Bank (ADB) was set to discuss measures to control regional inflation as its regular meeting which will take place in Hanoi, Vietnam, from May 3-5.

Nguyen Van Giau, Governor of the State Bank of Vietnam, said at a press briefing prior to the meeting, the first ever hosted by Hanoi during its 45-year long membership, that so far this year Vietnam has devalued its currency to reduce demand in order to curb increasing inflationary trends.

He added that the central bank has tightened credit policy, with growth rates limited to a maximum of 20 percent, cut public spending by 10 percent to reduce budget deficits and axed 10 percent of state investment, in an effort to stabilise the macro economy and ensure social welfare.

In this regard, ADB Vietnam Director Ayumi Konishi backed the Vietnamese Government’s monetary policy, especially the reduction in public spending.

Any policy needs time to prove its soundness and from May, inflation would certainly slow down, said the ADB resident representative.

Konishi called on the Vietnamese Government to pursue measures for inflation control even if some enterprises would face difficulties in accessing bank loans.

As one of 67 ADB members, Vietnam has benefited from some 100 projects with commitments of an estimated 10 billion USD over the past 18 years, since the two parties resumed relations in 1993.

Of the commitments, 6 billion USD has been signed for disbursement, making Vietnam one of the three top ADB soft loan beneficiaries, especially in infrastructure development, social welfare, healthcare and poverty alleviation.

In addition, the largest continental development bank has supported Vietnam in environmental programmes, policy consultancy and many other areas.

In the years to come, ADB will continue arranging credits for Vietnam , with commitments to 1.3 billion USD a year. The regional bank has also helped Vietnam to broaden access to credits such as public-private cooperation and arrange guarantees on loans in support of Vietnam ’s sustainable growth and comprehensive infrastructural development.

As a result, Vietnam has emerged as an average income earner and fulfilled some UN millennium development goals ahead of schedule, emphasised the central bank governor.

The hosting of the ADB regular meeting is another evidence of the nation’s drastic growth in both material foundations which meet international standards and experience in hosting major regional events.

Tags: ADB, ADB Annual Meeting