Economics, Foreign Exchange, Vietnam - Wednesday, May 4, 2011 21:57 - 0 Comments

Emerging Markets: Vietnam claims it can handle inflation

Emerging Markets, May 4 2011

Vietnamese policymakers insist they can tackle the country’s alarming inflationary pressures but have conceded that previous targets may be beyond them.

Vietnam’s National Assembly had set a full-year target for inflation growth in 2011 of below 7%, which looks highly ambitious in light of April’s 17.5% year on year CPI growth, with some analysts putting food inflation as high as 24%. “The targets have not been revised officially,” said Nguyen Van Giau, Governor of the State Bank of Vietnam, the country’s central bank. “However, I think that Vietnam, and other countries, are now facing difficulties in realizing the targets. They were set four or five months ago and new issues have arisen,” he said, highlighting global commodity price increases, Middle East politics and the Japan tsunami as unexpected influences.

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