Deputy Prime Minister Vuong Dinh Hue, Chairman of the National Financial and Monetary Policy Advisory Council, chaired a meeting in Hanoi on September 28 to review monetary policy for the third quarter of 2018 and outline tasks for the coming time.
Members of the council said Vietnam’s financial and monetary policy, and macro-economy remain stable this year amid geo-political and commercial instability in the world. VNA
The country’s gross domestic product (GDP) grew by 6.98 percent in the first nine months of this year, the highest since 2011 and surpassing the set target. Inflation was under control, below the target set by the National Assembly.
Monetary policy has been directed actively and flexibly and combined with fiscal policy in order to develop the government bond and monetary markets, thus cutting lending costs for the State budget, they said.
The council’s members pointed out that foreign exchange and interest rates face uncertain factors of the world economy such as the escalating trade war and difficulties in the domestic private sector.
They suggested that the government should keep a close watch on trade disputes globally to mitigate negative impacts, tighten fiscal policy, stabilise the macro-economy, renew growth model based on increasing labour output.
The council proposed cutting interest rates if possible, flexibly directing foreign exchange rates, restructuring export markets, especially China, and curbing inflation below 4 percent this year.
The Deputy PM acquired suggestions at the event and promised to submit them to the government to adopt suitable measures.