VietNamNet Bridge - Inflation and interest rates in Vietnam are still high in comparison with many countries, after a long period of macroeconomic instability, a report by the Central Economic Committee said.

According to the report, in the past 14 years, China’s average inflation was 2.32%/year. It was 2.60%/year in Thailand, compared to 7.9%/year in Vietnam.

Despite changes in 2008, both China and Thailand quickly adjusted their inflation to the average low level of around 2% in the past two years. Last year, Vietnam's CPI rose by 1.84%, equivalent to that of Thailand and China.

Therefore, the report said, in the coming years, curbing inflation will remain a top priority in the monetary policy of Vietnam.

On the other hand, interest rates in Vietnam in recent times have been at a high level. At the same time, in China and Thailand the average interest rate in the past 10 years was around 2-4%/year, compared to more than 10% in Vietnam.

Although the situation has improved since 2013, the lending rates in Vietnam in May 2015 were still at 8.5% - 9.5%/year, still very high compared to China and Thailand.

The report noted that the difference in interest rates will be obstacles to maintain a stable exchange rate under conditions of financial liberalization.

In the future, Vietnam’s monetary stability will require a synchronized approach through a policy of reducing credit interest rates, controlling inflation and stabilizing the exchange rate.

Na Son