Vietnam re-gained macroeconomic stability over the past year, but the economy is progressing at two speeds, the International Monetary Fund (IMF) said in a press release on August 9.
According to IMF’s latest consultation with Vietnam, the export sector is performing well, especially foreign direct investment (FDI) enterprises.
The domestic sector, though improving, has yet to find a solid footing because of several factors, including low productivity, structure of resource allocation, impaired bank balance sheets and inefficiency in several state-owned enterprises (SOEs).
Credit growth has picked up modestly in real terms, mostly concentrated in the export-oriented and agricultural sectors. Headline inflation has declined significantly, but underlying pressures persist, it said.
IMF projects Vietnam’s grow rate to be 5.03 percent in 2013, supported by exports. This outlook, however, depends on an improvement in the global economy, broadly unchanged monetary and exchange rate policies, and a measured withdrawal of fiscal stimulus.
Vietnam should remain focused on achieving low and stable inflation, supporting the exchange rate anchor, and replenishing international reserves, the world’s renowned financial institution noted.