HANOI, June 8 (Reuters) – Vietnam will lean towards expansionary fiscal policies to meet the government’s economic growth target, with the room narrowing for monetary policy, the country’s deputy central bank governor Pham Thanh Ha was cited by state media as saying on on Monday.
Vietnam will not sacrifice stability for fast short-term economic growth, Ha told the Dau Tu Chung Khoan newspaper.
• Vietnam targets a GDP growth rate of at least 10% and aims to keep inflation at 4.5% this year, but inflation accelerated while the trade deficit widened to a record high in May, with the Southeast Asian country feeling the impact of the Iran war.
• Ha said the central bank was consistent in its policy to ensure macroeconomic stability and keep inflation under control.
• “Given that the current room for monetary policy is narrow, priority should be given to targeted expansionary fiscal policy, making fiscal policy truly a pillar for promoting high and sustainable growth,” Ha said.
• Banks’ total lending as of April 21 had risen 3.83% from the end of last year, Ha said.
• Vietnam, which often relies on expanding credit to ensure economic growth, targets credit growth of 15% this year.
(Reporting by Khanh Vu; Editing by David Stanway)
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