Economic Growth And Policies Of Vietnam
In the Asian Development Outlook 2009 (ADO), the annual ADB publication released yesterday, that forecasts economic trends in Asia, the ADB predicted that: "In 2010, expected increases in remittance inflows and incomes will speed up growth of private consumption. Improvement and consolidation of global financial conditions will bring about an upturn in FDI inflows and foreign-financed investment. At the same time, growth of public consumption and domestically financed investment will moderate due to the decline in budget spending and tighter bank credit"
Also according to the forecast by the ADB, Vietnam's average inflation will stand at 10% this year and 8% in 2011.
These forecasts are based on Vietnam's somewhat tightened fiscal policy with the fiscal deficit target at 8.3% of GDP, and the tightened monetary policy with the target credit growth of 25% this year.
In the report, the ADB stressed that substantial and timely policy responses helped Vietnam overcome the global recession in 2009. However, the economic stimulus measures also resulted in devaluation and inflation pressures.
Policies to focus on macroeconomic stability rather than rapid growth, and efforts to improve the economy's efficiency are essential for Vietnam's sustainable development as a middle income country, said the report, adding that: "Investor confidence is the key factor for Vietnam to attract large inflow of foreign direct investment and to ensure that the capital account surplus is larger than current account deficit so as to result in the increased foreign exchange reserve. As Vietnam will implement the new Socio-Economic Development Plan 2011-2015 as a middle income country, putting focus on efficiency will enable Vietnam to be integrated deeper into the regional and global value chains".
The report noted that the Vietnamese Government took several steps to improve governance and the business environment in 2009. The ongoing efforts under the Project 30 to reduce administrative procedures are welcomed as a policy on right direction to improve efficiency.(责任编辑：BUG)