Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>Vietnam>>Economy>>Inflation expected at 2.6 per cent this year
NEWS UPDATES Asean Affairs     June 15, 2017  








Inflation expected at 2.6 per cent this year

Vietnam:The country’s inflation this year is forecast to reach 2.6 per cent barring fluctuations of prices on world markets and adjustment in the cost of public services, the National Financial Supervisory Commission (NFSC) reported on Monday.

In the first five months of the year, the average inflation rate was at 4.47 per cent. But the commission forecast that inflation would drop toward the end of the year due to stability of food and restaurant prices.

However, in its economic report for May and the first five months of 2017, the NFSC estimated that if the exchange rate of Việt Nam đồng against the US dollar rises 1 per cent, inflation will increase 0.17 per cent, while noting that the VNĐ/USD rate in commercial banks and the free market has shown a downward trend since early this year.

In the remaining months of 2017, the exchange rate will be affected by high foreign currency demand due to a rising trade deficit, the report said, forecasting that the country may see its trade balance change from a surplus in 2016 to a deficit of about 3.5 per cent of total exports.

The US Federal Reserve (Fed) raising of short-term interest with small adjustments has yet to cause pressure on the exchange rate, the report noted.

In the long-term, the commission said, the Viet Nam dong will be under pressure from the Fed’s roadmap of raising interest rates, along with unpredictable changes in the prices of Chinese renminbi and Japanese yen. The prospect of stable interest rates in 2017 is being supported by macro factors and policies, such as reduced pressure on exchange rates and drastic measures in tackling bad debt, NFSC said.

The report also made clear that measures to settle bad debt help reduce interest rates. On May 16, the Government issued Decree 61/2017/ND-CP on the verification of bad debts’ initial price, and the formation of a council for bad debt auction.

At the same time, a draft law on support for credit institution restructuring and bad debt settlement is being finalised, and a decree on settlement of credit institutions’ bad debt may be approved as soon as June 20.

Interest rates for all terms in the interbank market have gradually decreased to 4-4.2 per cent as of May 22, down 0.8-1 percentage point compared to the levels at the end of April. Last week, deputy Governor of the State Bank (SBV) of Việt Nam, Nguyễn Thị Hồng, said the bank has focused on policies to curb inflation under the 4 per cent target set by the Government.

Figures from the General Statistics Office show a 0.53 per cent drop in the consumer price index (CPI) in May from the previous month, mostly due to a sharp fall in food prices. This month’s CPI rose 3.19 per cent from the same period in 2016.

Hong said the central bank’s management of interest and exchange rates has kept the foreign currency market stable. By the end of last month, the central rate rose 1 per cent from the same period last year.

NFSC’s calculations show that the country’s ratio of credit-to-GDP has continuously increased since the last quarter of 2015 to reach 11 per cent in the first quarter of this year. This has been the second highest level in the 2009-17 period, following the ratio of 13 per cent in the first quarter of 2011.

The country’s credit growth in May saw positive signs. By the end of last month, credit rose 5.7 per cent compared to the same period last year. — VNS


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



 
Today's  Stories                          June 15, 2017 Subsribe Now !
• Economists raise Singapore's 2017 growth forecast to 2.5% Subcribe: Asean Affairs Global Magazine
• Indonesia grapples with inflation dilemma as subsidies cut 
• Reform political apparatus, experts say 
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Malaysia optimistic of signing PPAs with Laos and Thailand soon
• CBS to be listed on UPCoM
Asean Analysis                  June 2,  2017
• Asean Analysis June 2, 2017
Trump Should Call Myanmar's Aung San Suu Kyi
Advertise Your Brand

Asean Stock Watch June  14, 2017

• Asean Stock Watch-June 14, 2017
The Biweekly Update
• The Biweekly Update  June 2, 2017

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com