Vietnam is determined to control inflation, stabilize macro-economy, says Prime Minister Pham Minh Chinh at the meeting (Photo: VNA)

Proactive, calm, policy responsive 

Vietnam has been proactive, calm, and policy responsive amid numerous economic fluctuations, said delegates at a meeting hosted by Prime Minister Pham Minh Chinh in Hanoi on Saturday. They said this has helped Vietnam achieve macro-economic stability, control inflation, and recover following the COVID-19 pandemic. 

Ha Thi Kim Nga, Senior Economist and Representative of the International Monetary Fund in Vietnam, said Vietnam’s economy is bouncing back strongly thanks to its strong vaccination program. Vietnam reserved sufficient foreign currency to implement its macro-economic policies and the IMF has revised Vietnam’s GDP projection from 6% to 7%, according to Nga. 

Ms Dorsati Madani, a WB senior economist speaks at the meeting (Photo: sggp.org.vn)

Dorsati Madani, Senior Economist at the World Bank, said Vietnam’s economy and macro environment are quite good, its recovery is on the right track, domestic demand is recovering, and the manufacturing sector is growing well. She noted that Vietnam’s current challenge is ensuring a balance between economic recovery and inflation control, which requires great flexibility and agility in coordinating financial and monetary policies.

Madani believes Vietnam's economy has a lot of potential to grow. With its economic aid packages and public investment projects, Vietnam is moving toward becoming a green, digital, developed country in the next few decades.

Many Vietnamese and foreign economists attribute Vietnam’s inflation to cost-push, mainly by gasoline prices. They advise Vietnam to strictly control the price of commodities, particularly petrol and oil.

Stronger determination, greater effort

At recent meetings on macro-economic management, Prime Minister Pham Minh Chinh stressed the importance of staying vigilant, closely following developments at home and around the world, and flexibly coordinating policy tools to control inflation, maintain macroeconomic stability, and ensure economic balance. The Prime Minister said these  urgent priorities are the key strategic tasks until the end of this year and in the coming years.

Mr. Chinh said Vietnam will implement prudent, proactive, flexible, timely, effective monetary policies in close coordination with fiscal and other policies. Vietnam will focus on strengthening management, inspection, and supervision of the market, prices, and essential commodities including gasoline, food, and foodstuff. 

The Prime Minister said only economies with strong resilience and competitiveness have a solid foundation for macroeconomic stability and can respond to external shocks and fluctuations. He urged strengthening the domestic market, diversifying international markets, promoting trade, building Vietnamese brands, and boosting sustainable exports. The Prime Minister said it’s important to promote linkages along the value chain, enhance added value, connect the domestic economic sector with the foreign invested capital (FDI) sector, and connect the domestic market with the international market.

Ministries and sectors are urged to fine-tune institutions, mechanisms and policies to mobilize and effectively use resources, promote production and business development, accelerate economic restructuring, increase the application of science and technology, strengthen digital transformation, develop the digital economy and the green economy, and adapt to climate change.

Vietnam will continue to build an independent and self-reliant economy while accelerating international integration. 

Prime Minister Pham Minh Chinh emphasized the need for stronger determination and greater effort to control inflation, stabilize the macroeconomy, ensure economic balance, prevent a recession, and boost economic recovery.