Pressure on monetary policy to be alleviated
International organizations have emphasized that caution is needed regarding monetary policy in Vietnam given the ongoing conditions.
Topic: pressure
Pressure on monetary policy
The challenges linger in maintaining exchange rates and addressing the interest rate gap between the VND and USD.
Monitoring of interest rates at banks needed
At a discussion session on October 28, many National Assembly (NA) deputies said it is necessary to adopt solutions to restore Vietnam’s corporate bond and securities markets as soon as possible, to ease the pressure on credit. In particular, the government needs to closely monitor interest rates at banks, so that sectors carrying out production and business can access credit at an appropriate cost.
Lack of workers an obstacle in digital growth
According to the Center for Strategic and International Studies (CSIS) in the US, Vietnam is gradually becoming a digital power in Southeast Asia, and is also one of two countries posting the fastest growth in e-commerce in the region, joining the Philippines, according to Google-Temasek-Bain. This has created a shortage of human resources and put pressure on recruitment activities.
Ample opportunity to control inflation
The price of many strategic materials under pressure from global uncertainties remains the greatest “unknown” that may “shake” the control of inflation over the second half of the year. According to analysts, however, there is still ample opportunity to keep inflation at below 4 per cent.
VDSC: VND to depreciate 2-2.5% this year
The Viet Dragon Securities Company (VDSC) believes the USD/VND exchange rate is under considerable short-term pressure to increase but this pressure will ease by the end of the year. It forecasts a 2-2.5 per cent depreciation for the year as a whole.