Vietnam central bank says global risks complicate policymaking

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

HANOI, July 2 : Global risks are putting pressure on the Vietnamese central bank's policy management, deputy governor Pham Thanh Ha said on Thursday.

The Southeast Asian manufacturing hub is targeting economic growth of more than 10 per cent this year, supported by stronger infrastructure spending, but the impact of the Iran war could derail its ambitious plans.

"Geopolitical tensions and trade frictions have continued, while the escalation of the conflict in the Middle East in particular has placed significant pressure on international commodity and financial markets," Ha told a press conference in Hanoi.

Ha added that the dong currency has been put under pressure by the strengthening U.S. dollar, and the central bank was working to stabilising the foreign exchange market.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

Ha said the central bank has been able to manage the foreign exchange market in a flexible manner, adding that demand for foreign currencies in the Vietnamese economy has been fully met.

Pham Chi Quang, head of the central bank's monetary policy department, told the same conference that Vietnam is facing mounting inflationary pressure due to its exposure to the global economy.

Quang said the central bank will make inflation control a priority during the rest of the year to ensure macroeconomic stability, while also trying to achieve the government's economic growth target of more than 10 per cent.

Vietnam's annual inflation rate came in at 5.6 per cent in May, higher than the country's inflation target of 4.5 per cent for the entire year.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here