Vietnam’s macroeconomic grows from bottoming up: IMF

The International Monetary Fund has released its findings about Vietnam’s macroeconomic that the country has reaped the growth potential from bottoming up.

On the macroeconomic front, there are signs that activity could be bottoming out, led by strong exports. Headline inflation has declined from double digits to about 7 percent in March 2013 against the same period last year.

Calm has returned to financial markets with the State Bank of Vietnam (SBV) ’s efforts to provide liquidity and the merger of several small weak banks.

The current account surplus surged to over US$9 billion in 2012, in part due to weak activity and low imports. With this, gross international reserves rose at end-February 2013 to more than 2 months and a half of prospective imports of goods and nonfactor services.

The macroeconomic and financial market stabilization gains of 2012 improved the credibility of the SBV with market participants.

IMF’s experts warned that going forward, recent stabilization gains need to be consolidated through appropriate macroeconomic policies to further bolster international reserves and fiscal buffers.

The Vietnamese authorities need to accelerate reforms in the banking sector and the SOE sectors to reduce vulnerabilities and restore Vietnam to a higher, sound and sustainable growth path.

The findings of the Southeast Asian were conducted in end of April, 2013.

By Bao Minh – translated by Uyen Phuong

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