http://www.vov.org.vn/2005_01_03/english/kinhte1.htm
IMF representative: nation can build on economic success Susan Adams, chief representative of the International Monetary Fund (IMF) in Vietnam, said that Vietnam has a strong record of success in achieving high growth and significant poverty reduction, prudent economic management, and rapid integration into the global economy. Vietnam can build upon its remarkable achievements thus far to sustain the momentum of strong growth and poverty reduction over the intermediate term, she added. >From a growth rate of 7.25 percent in 2003, growth in Vietnam’s GDP slowed in the first quarter of 2004 due to the impact of the avian flu outbreak and drought but began to rebound in the subsequent months. Inflation was modest at 3 percent at the beginning of 2004 but rose to about 10 percent by October 2004, owning mainly to a jump in food prices, which represent 48 percent of the Consumer Price Index. GDP growth has now reached 7.7 percent. Inflation is estimated at 9.5 percent. The current account deficit is just below 5 percent of GDP, financed by a combination of ODA and FDI inflows. Notwithstanding a widening of the current account deficit driven by strong import demand, Vietnam has significantly increased its foreign exchange reserves and the increase continues albeit slightly. Recent acceleration in credit growth is still a cause for concern, given uncertain loan quality and the implications for bank balance sheets. Credit growth rose from 28 percent at the end of 2003 to 36 percent by July 2004, led by loans to State-owned enterprises. In response to rising inflation and high credit growth, authorities have taken a series of measures, such as increasing bank reserve requirements and lowering tariffs on number of items, including petroleum and steel products. In August 2004, the Prime Minister’s directive called for a cut in government expenditures, a strengthening of enterprises’ efforts to reduce production and distribution costs, and a tightening of price controls. While significant progress has been made in trade liberalisation, reforms in the areas of State-owned commercial banks and enterprises have moved slowly. The 2005 economic outlook appears generally favourable. GDP growth is projected to be broadly unchanged, with inflation expected to decline to 5-6 percent. Although export growth is likely to decline, the current account deficit can continue to be financed by ODA and FDI inflows. The expected lower export growth reflects the elimination of textile quotas for existing WTO-member countries, which will expose Vietnam to greater market competition. Sustaining strong growth and poverty reduction over the medium tem hinges not only on continued prudent economic management but also on structural reforms, Ms Adams said. The latter include restructuring State-owned banks and enterprises, further developing the private sector, securing WTO accession, and enhancing governance and the transparency of policymaking. Ms Adam said that the IMF will continue providing Vietnam with analysis and policy assessments on macroeconomic and financial issues and that it fully supports the Vietnamese Government in its efforts to implement the Comprehensive Poverty Reduction and Growth Strategy (CPRGS) and the next Five-Year Socio-Economic Development Plan for the 2006-2010 period. -------------------------- Want to discuss this topic? Head on over to our discussion list, [EMAIL PROTECTED] -------------------------- Brooks Isoldi, editor [EMAIL PROTECTED] http://www.intellnet.org Post message: osint@yahoogroups.com Subscribe: [EMAIL PROTECTED] Unsubscribe: [EMAIL PROTECTED] *** FAIR USE NOTICE. This message contains copyrighted material whose use has not been specifically authorized by the copyright owner. OSINT, as a part of The Intelligence Network, is making it available without profit to OSINT YahooGroups members who have expressed a prior interest in receiving the included information in their efforts to advance the understanding of intelligence and law enforcement organizations, their activities, methods, techniques, human rights, civil liberties, social justice and other intelligence related issues, for non-profit research and educational purposes only. We believe that this constitutes a 'fair use' of the copyrighted material as provided for in section 107 of the U.S. Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond 'fair use,' you must obtain permission from the copyright owner. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/osint/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
