Actively stabilize the macro-economy

(VOVworld) – Prime Minister Nguyen Tan Dung on August 25 chaired a government meeting on the impacts of the global economic crisis on Vietnam’s economy. Prior to the meeting, Vietnam had taken measures to minimize any negative impact on achieving its socio-economic targets. Negative factors include the plunge of global oil prices, unpredictable developments in the stock market, and exchange rate adjustments following China’s yuan devaluation. The growth rates of emerging economies, including China, have declined, affecting the global economy and Vietnam. Prompt countermeasures Vietnam has adjusted the exchange rates between the VND and major foreign currencies in response to global fluctuations. Since the beginning of the year, in response to unpredicted developments such as the lowest global oil price in history, the US interest rate rise, the EU economic crisis, and the Greek crisis, the State Bank of Vietnam (SBV) has twice raised the inter-bank exchange rate 2%. The foreign exchange market and exchange rate have been stable over the past 7 months. Nguyen Thi Hong, SBV Deputy Governor, said: “On August 11 the People’s Bank of China devalued the Chinese yuan by 1.9%, a shock which caused the decline of the EU’s major currencies. Because China and the EU countries are major trading partners of Vietnam and Vietnam has an import surplus from China, the State Bank of Vietnam decided to expand its foreign exchange rate to deal with the situation.” The public think the government’s measures are appropriate. Associate Professor Doctor Tran Hoang Ngan, Rector of HCM…