The Vietnam Annual Economic Report 2011 quotes that the Government must be determined to give top priority to implementing tight monetary policies.
The report titled “The Economy at a Crossroad”, also warns that financial polices should be tightened but calculating long-term growth was a major concern.
Economists forecast that the growth of Vietnam’s public debt is likely to halt temporarily in 2011 but will rise gradually to hit 64 percent of gross domestic product (GDP) by 2015 and 80 percent of GDP by 2020.
Therefore, the Government should manage to reduce State budget deficit of 7.7 percent of GDP in 2009 down to 4.3 percent in 2011, 3.1 percent in 2015 and 2.8 percent in 2020.
So far, payment and liquidity capacities of the public debt remain at a safe threshold but the macro-economy still has many latent complicated factors. Therefore, any extreme spending will cause a budget deficit or high inflation and devaluation of the dong.
The report also analyzes the trend of interest rates in Vietnam and discusses in-depth a range of key issues that are challenging the Vietnamese economy at the beginning of the new decade.
Data in the report has been collected until the end of December 2010 and some prominent issues are updated until the end of March 2011.
