Vietnam’s inflation expected to peak at 18.6 pct in Q3

Vietnam’s inflation will peak at around 18 to 18.6 percent at the third quarter of 2011 and then decline slowly, said Ray Ferguson, director of Standard Chartered in Singapore and Southeast.

Ray Ferguson said that in early 2011, Standard Chartered Bank forecasts Vietnam’s economic growth at 7.2 percent in 2011. However, recently, when the monetary is tightened and baseline rate is raised, Standard Chartered Bank has lowered its forecast on the country’s economic growth this year to 5 percent.

“In fact, we have seen the short-term interventions of the Vietnamese government to curb inflation,” said Ray Ferguson. “It is the excessive use of limited dollars and increased demand for the domestic currency of Vietnam”.

However, in reality, the supply of money is also very stressful in terms of liquidity. This led to some adjustments in favour of the dong in recent times. These are factors giving a positive move to the economy. “Nonetheless, the challenge is that we must maintain this move in a relatively long time to achieve the expected results. But this is a visible and persuasive evidence from the government’s measures that are being effectively implemented,” said Ray Ferguson.

For the government, it needs to pay attention to control measures such as interest rates, intervention to limit the status of US dollars, eliminate psychological hoarding dollars, gold, and measures of interest rate ceilings for loans… “Although this control may affect some parts of the economy, these are necessary measures,” said Ray Ferguson. – DDDN

Tags: Vietnam 2011 inflation, Vietnam economic, Vietnam economy, Vietnam inflation

Posted by VBN on May 14 2011. Filed under Economy News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry