Prime Minister Nguyen Tan Dung asks ministries and agencies to continue keeping a close eye on developments and prepare measures for a worse situation – Photo: VNA

"Looking at what has happened recently, we can say that there are no big signs that the macro economy is upset or that we will be forced to adjust our goals," Dung said at the end of a meeting with ministers to discuss the impact of the recent volatility in global markets on Viet Nam's economy.

Dung lauded efforts of ministries in keeping close watch to the general situation as well as their close coordination in proposing timely solutions, which helped keep the macro-economic and socio-economic targets on the right track.

However, he said that due to unexpected changes in the world situation and their impacts to Viet Nam, it is crucial to stay active in dealing with difficulties and challenges and optimising new opportunities.

He asked ministries and agencies to continue keeping a close eye on developments and prepare measures for a worse situation. He also requested for the provision of smooth and updated information as well as forecasts and solutions for people and enterprises.

The PM also directed ministries and agencies to stay firm with set targets, with macro-economic stability being the utmost goal.

Dung also asked for more efforts in boosting production, business and investment, especially in oil and gas sector, together with stronger measures to increase exports, reduce imports, and combat smuggling and trade fraud.

A sharp plunge in global stocks markets during the last week, led by China, has analysts worried global economic growth is slowing. Viet Nam expects its economy to expand 6.5 per cent this year compared to 6 percent growth last year.

Viet Nam's central bank has adjusted its exchange rate policy twice in the last two weeks to allow for a depreciation of the dong. A weaker currency should boost prices of imports and could threaten the government's inflation target this year of about 5 per cent, up from 4.1 per cent last year.

Central bank Governor Nguyen Van Binh said he did not expect any further devaluations of the dong this year. The bank has allowed the currency to weaken about 5 per cent so far this year.

"We have devalued the dong quite a lot and there's no reason for a further depreciation," Binh said. "The problem now is the market sentiment."

The State Securities Commission and relevant ministries also affirmed that the stock market will recover in the future and will welcome new flows of investment.

Source: VNS