Monetary and fiscal policies have been tightened to fight inflation in Vietnam (though it is among the lowest in the world), instead of aiming to recover production and boost growth, which is needed after several years of pandemic.
The State Bank of Vietnam (SBV) is still intensifying the degree of monetary easing, even when many other countries have recently opted for doing just the opposite.
National Assembly Chair Vuong Dinh Hue has asked commercial banks to share difficulties with businesses, stressing that such support will also help themselves and that banks cannot have profits without businesses.
In the first half of 2021, Vietnam in general achieved considerable growth targets in the context of a stable macro environment.
For the time ahead, the State Bank of Vietnam (SBV) will keep a proactive and flexible monetary policy basing on market developments and forecasts for the macro-economy, SBV Deputy Governor Dao Minh Tu told a meeting on April 22.
Vietnam’s economy was adversely affected by the COVID-19 pandemic in 2020, along with natural disasters and the impact of trade conflicts.
Fiscal and monetary tools and policies should be governed in a more proactive and flexible manner from now to year’s end in order to maintain macro-economic stability and boost growth,
The US dollar on Wednesday depreciated against the Vietnamese dong after the State Bank of Viet Nam (SBV) sold the greenback on the cheap to stabilise the local foreign exchange market.
Many experts believe that loosening the monetary policy won’t help much in the context of Covid-19, saying that it will do more harm than good.
Since the national economy this year is facing bigger challenges than last year, a looser monetary policy is needed, according to Nguyen Tri Hieu, a respected finance expert.