Vietnam pledged to pursue “flexible and cautious” monetary policies and an exchange rate that will support exports in 2013, extending its efforts to revive an economy hurt by inflation and a credit crunch in the past year.
The government aims to boost economic growth to about 6 percent to 6.5 percent next year, with “reasonable” levels of credit growth to “efficiently help businesses,” Prime Minister Nguyen Tan Dung said in an instruction to ministries posted on the state website yesterday.
“This means the government may loosen its monetary policy further next year,” said Vu Thanh Tu, head of research at Viet Capital Securities Co. in Ho Chi Minh City. “It’s good as long as the government ensures it will not ease policies too quickly,” he said by phone today.
Vietnam is accelerating government spending and boosting bank lending to bolster an economy that expanded 4 percent in the first quarter, the slowest pace since 2009. Growth may be as low as 5.2 percent in 2012, Deputy Minister of Planning & Investment Cao Viet Sinh, said in an interview on June 5, which would be the least expansion in more than a decade.
The government will strengthen its management of the banking system, foreign exchange and gold markets, and continue the revamping process to ensure stability of lenders, according to the prime minister’s instruction. It will also accelerate restructuring of state companies and reduce bad debts, it said.