Vietnam’s prime minister continues to focus on controlling inflation as the government seeks to stabilise the economy.

 

Over the last three months, the currency has plummeted 6% against the Dollar, and the stock market has fallen by over 20%, says PM Pham Minh Chinh.

 

He added that Vietnam’s economy is facing new challenges but promised to be “vigilant” and said the government will “not panic.”

 

The country’s economy has rallied from the pandemic but now faces a slump in global demand and a more robust Dollar.

 

“It’s getting more difficult to manage the macro economy,” Chinh said. “We need to stay vigilant [against risks] but we won’t panic.”

 

Reuters reports that Vietnam’s GDP is forecast to grow 8% in 2022, surpassing last year’s growth of 2.58%. The country aims to cap inflation at 4% this year.

 

Chinh went on to add that the country will continue to “pursue an active, prudent, flexible and sturdy monetary policy in harmony coordination with fiscal policy and other policies, without abrupt changes.

 

“The bond and stock markets now bear risks after a period of strong growth, with businesses having a high demand for capital for production while banks’ credit is tight,” Chinh told parliament, going on to say that the real estate market is facing liquidity problems.

 

The country’s central bank has held emergency meetings with commercial banks regarding the liquidity system as lenders face mounting pressure from elevated interest rates and tightening credit conditions.

 

The PM said the government would take steps to make sure there’s more transparency and effectiveness within Vietnam’s financial and real estate markets.

 

“The government will propose amendments to securities and enterprise laws and related regulations,” Chinh said.

 

In addition, as the government was slow to react to the fuel supply shortages, citing limited domestic supplies and financial difficulties, the prime minister said

Vietnam would look into increasing the national fuel storage capacity and domestic fuel production to avoid future shortages