25 May, 2007
IMF deputy director bullish on Vietnam growth http://www.nhandan.com.vn/english/business/250507/business_9t.htm#IMF%20deputy%20director%20bullish%20on%20Vietnam%20growth
Though entering the global economy later than most of its Southeast Asian neighbours, Vietnam's impressive progress to date gives people cause for optimism, said Deputy Managing Director of the International Monetary Fund, Takatoshi Kato.
"The fundamentals of Vietnam's economy are strong, there is a firm basis here to expect the continuance of growth rates of more or less than 8% over the immediate future," Kato told a press briefing in Hanoi, on May 24.
The IMF executive also said that country's foreign debt was at an acceptable level as Vietnam's foreign direct investment and exports are making a strong, sustainable contribution to the country's gross domestic product (GDP).
Observers have said that the growth is largely thanks to the government's determination to open up the economy, to accelerate comprehensive reforms and to uproot corruption.
The size of the economy has also grown dramatically, from US $45 billion in 2004 to more than US $60 billion in 2006. Vietnam has never been so immersed in the global economy, with annual exports now reaching US $40 billion and FDI commitments topping US $10 billion.
However, IMF Mission Chief for Vietnam Lazaros Molho pointed out many challenges Vietnam will soon face, including how to make sure the state-owned sector can become more competitive and thrive in a more competitive global environment.
There is also a concern about controlling inflation while ensuring growth is sustainable, Molho stressed. He added the challenge of macro economic stabilisation for the Vietnamese government would become more complex, calling for a more active role of fiscal policy.
The Deputy Managing Director meanwhile urged that investment law, corporate law and all relevant regulations that contribute to promoting governance in the economic sector should be further improved.
He said that the IMF would stand ready, along with other development partners, to support Vietnam to maintain its growth by continuing to offer policy advice, training, and technical assistance in areas such as fiscal management, tax administration and statistics.
During his two-day trip to Vietnam that began on May 24, Kato has met with Prime Minister Nguyen Tan Dung, officials of the State Bank of Vietnam, ministry representatives, and private sector representatives in order to learn more about the Vietnamese economy and share his views on regional and global developments. (VNA)