Vietnam risks being vulnerable to external shocks if it doesn't push through reforms to strengthen its banking system and restructure state businesses, according to International Monetary Fund chief Christine Lagarde.
The Southeast Asian nation isn't in a position to withstand economic blows from tightening of monetary policies elsewhere, a deep and prolonged drop in commodity prices and a slowing China without reforms, she said in a March 18 interview in Ho Chi Minh City.
"The risk is that from being slightly vulnerable, Vietnam could become very vulnerable to external shocks," she said. "It would expose the Vietnamese economy and that would not be good for the Vietnamese population."
Vietnam's integration with the global economy has driven growth and reduced poverty. The economy is forecastto grow at 6.6% this year, according to Bloomberg surveys, while Prime Minister Nguyen Tan Dung has proposed raising the country's 2016 economic expansion target to 7% from 6.7%.
The nation's poverty rate has dropped to 13.5% from 60% in 1993 and its economic growth is expected to be "solid" at more than 6% this year, Ms Lagarde said in a visit to the country last week, during which she met with the country's top leaders. Vietnam, which is in the process of a once-in-five-years political transition, now has one of the world's most open economies, she said.
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The Southeast Asian nation isn't in a position to withstand economic blows from tightening of monetary policies elsewhere, a deep and prolonged drop in commodity prices and a slowing China without reforms, she said in a March 18 interview in Ho Chi Minh City.
"The risk is that from being slightly vulnerable, Vietnam could become very vulnerable to external shocks," she said. "It would expose the Vietnamese economy and that would not be good for the Vietnamese population."
Vietnam's integration with the global economy has driven growth and reduced poverty. The economy is forecastto grow at 6.6% this year, according to Bloomberg surveys, while Prime Minister Nguyen Tan Dung has proposed raising the country's 2016 economic expansion target to 7% from 6.7%.
The nation's poverty rate has dropped to 13.5% from 60% in 1993 and its economic growth is expected to be "solid" at more than 6% this year, Ms Lagarde said in a visit to the country last week, during which she met with the country's top leaders. Vietnam, which is in the process of a once-in-five-years political transition, now has one of the world's most open economies, she said.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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