IMF Expert Highlights Policies Motivating Vietnam’s Economic Growth | business

Illustrative photo (Source: VNA)

Washington (VNA) – Effective measures by the Vietnamese government have been loud IMF communications officer Pemba Tshering Sherpa.

In the first nine months of 2022, Vietnam’s economy recovered quickly as COVID-19-related restrictions were lifted.

Gross domestic product (GDP) grew 8.83% in the first three quarters of this year, motivated by strong manufacturing and exports, as well as growth in retail and tourism.

Speaking to the Vietnam New Agency, Pemba said that inflation in Vietnam has remained at lower levels than in most countries in the region.

She highlighted some measures that have contributed to economic results so far this year, noting the Vietnamese government’s shift in COVID-19 control strategy and the full reopening of the country’s economy in March thanks to the super-rapid vaccination campaign. This is the key to resuming economic motivation, she noted.

The expert also underscored the country’s low interest rate and responsive monetary policies, which have allowed businesses to resume operations, as well as tax cuts to support workers, including income and environmental taxes to minimize the impact of the global rise in gasoline prices, and price freezes on fuel some services, including energy, health care and education, which have helped keep inflation in check.

However, Pemba pointed to a number of challenges Vietnam faces and made a number of recommendations, particularly on monetary and fiscal policies. She also welcomed the recent widening of the trading range for the exchange rate and advised Vietnam to keep inflation around 4% until 2023.

She underscored the need to maintain flexible policies and the stability of the financial system, along with improving the business environment and productivity of domestic enterprises, as well as the capacity of the workforce and continuous economic digitization. Vietnam should also focus more on implementing climate change reform measures to achieve its goal of net-zero emissions in 2050, she added.

In its latest Global Economic Outlook, the IMF forecasts a 2.7% contraction in the global economy, while Vietnam will post growth of around 5.8%./.

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