HA NOI (VNS)— Monetary policies have achieved positive results in facilitating the restructuring and developing the nation's market economy, according to a report from the Academy of Policy and Development.
The report was presented at a seminar co-hosted yesterday by the Institute for Policy and Development and the Ministry of Planning and Investment to review policy efforts to curb inflation, ensure the safety and stability of the nation's financial system, and boost economic growth.
The report acknowledged the role of the State Bank of Viet Nam in planning and administering monetary policy and found that the bank had been successful in stabilising the foreign exchange rate and boosting foreign reserves. The balance of payments improved and the gold market has also been more tightly controlled. Inflation, while still troubling, has been held to single-digit levels, dropping from 18.13 per cent in 2011 to about 7 per cent this year.
Lending interest rates have also fallen from 2011 levels but still remain too high to effectively serve the country's need for capital. Nevertheless, credit growth has picked up in such sectors as agriculture and rural production, export-oriented enterprises, support industries and small- and medium-sized enterprises, the report said.
Dr Vu Minh Luan from the Academy of Policy and Development outlined his suggestions that the Government needed to work out a comprehensive plan for medium- and long-term financial and monetary policies. The Government also needed to closely supervise public spending to ensure the effective use of resources, Luan said.
To address rising bad debt levels in the nation's commercial banking system, a senior advisor of the Bank for Investment and Development of Viet Nam (BIDV), Can Van Luc, suggested that the Goverment should help business reduce surplus inventories and needed to take steps to stimulate the frozen real estate market.
Luc also pointed to the role of risk management funds and loan restructuring in helping ease the bad debt crisis.
Handling bad debts and ensuring the safety of credit institutions were essential to restructuring the economy, seminar participants agreed. — VNS