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Controlling Inflation and Stabilizing Economy Top Priorities for Central Bank in 2011 - Vietnam Briefing News

Dec. 7 – The State Bank of Vietnam announced on Tuesday that it would concentrate on controlling inflation and stabilizing the economy as its key goals for 2011.

“[The central bank] will actively, flexibly and prudently conduct monetary policies in order to give the first priority to controlling inflation and stabilizing the macroeconomy, contributing to growth economy,” Governor Nguyen Van Giau said in prepared remarks.

Lately, government rhetoric coming out of Hanoi has been more focused on promoting stable, gradual growth as opposed to previous tactics that focused on maximizing the country’s economic growth figures.

The International Monetary Fund has also advised Vietnam to further tighten its monetary policy as the best way to combat out of control inflation.

“A further tightening of monetary policy is required to restore orderly conditions in the foreign exchange market and contain inflationary pressures,” said Masato Miyazaki, the IMF’s division chief for the Asia and Pacific region.

Consumer price inflation in Vietnam rose to 11.1 percent last month, the highest level in almost two years, and leading experts predict that annual inflation figures for 2010 will come in at over 10 percent by year-end.

Giau said in prepared remarks that Vietnam’s GDP would come in at 6.7 percent this year, slightly above the government’s target of 6.5 percent.