The World Bank (WB) reported on March 21 that Vietnam announcing policies to stabilize the macroeconomy is an important step toward restoring the country’s image as one of the most attractive destinations in the region.
The WB says many Vietnamese households and businesses have transferred their money into US dollars and gold because of concerns about high inflation and a shortage of transparent policies so the government has taken drastic measures to deal with these problems.
The WB thinks that the Vietnamese government is on the right track as it sees settling instability as a priority though this could slow down growth in the short term.
If successful, the macroeconomic stabilization policies will help Vietnam achieve its pre-crisis growth rate in the medium term.
According to the WB’s report, international financial markets have responded positively to the measures introduced by the Vietnamese government, which have so far improved the risk of the foreign currency bonds it has issued.
The WB believes that the Vietnamese Government has committed itself to reinforcing its financial accounts and gradually reducing state budget deficits. It remarks that Vietnam’s public debts may remain sustainable if the country succeeds in maintaining its current pace of economic recovery.
(VOV)
