Donors say Vietnam economy still unstable
TUOI TRE Updated : Fri, June 10, 2011,2:09 PM (GMT+0700) 
Photo: Reuters
Deputy PM Nguyen Sinh Hung said foreign reserves increased by US$2 billion in the first five months.The fiscal deficit was likely to be 5.3 percent of GDP this year and the government hoped to reduce to reduce it to below 5 percent, he added.Deputy governor of the State Bank of Vietnam Nguyen Van Binh said the gap between official and black-market exchange rates had narrowed since the implementation of Resolution No.11.The donors hailed the positive impacts of Resolution No.11 on curbing inflation and stabilizing the economy.But they listed some negatives that threatened the success of Resolution No.11.Benedict Bingham, senior resident representative of the International Monetary Fund, said: “The stability of the dong is temporary and Vietnam’s economy is still unstable.”Australian ambassador Allaster Cox said: “The government has to attract the participation of the private sector in the fight against inflation.” It also needed to improve the effectiveness of state-owned enterprises, he added.The British and EU ambassadors said investors were concerned about the lack of transparency in economic information.Hung assured the donors that the government would continue to use public funds effectively, reduce the fiscal deficit, and support small and medium-sized firms.
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