Deputy PM Hue places strong emphasis on macroeconomic stability
He made the statement at a meeting of the National Advisory Council on Fiscal and Monetary Policies on December 21.
The majority of the council’s members highly appreciated the combination of both fiscal and monetary policies in maintaining macroeconomic stability, controlling inflation and supporting growth.
Deputy PM Hue said such results merited recognition given the many uncertainties on the global economic and political scene such as the UK’s decision to leave the European Union.
Governor of the State Bank of Vietnam Le Minh Hung said the central bank has been flexible and cautious in its monetary policy.
At the meeting, the council’s members noted that the rise of trade protectionism, nationalism, populism and currency weakening around the world would affect Vietnam’s exports in the time ahead.
They added that the impacts of climate change, a struggling agricultural sector and less room for monetary and fiscal policy would present the government with a greater challenge in managing the economy.
The council suggested that the government adopt a fiscal policy based on medium-term investment plans and annual financial plans with the focus on restructuring budget spending and streamlining public expenditure.
Concerning monetary policy, the central bank should continue to follow a cautious and flexible path with the goals of ensuring macroeconomic stability and strengthening confidence in the Vietnamese dong.
Furthermore, money should be supplied at a level appropriate with the economic situation and in line with the government’s targets.
On behalf of the government, Deputy PM Hue urged the council to closely monitor and thoroughly assess the global and domestic situation in order to offer accurate advice to the government in its macroeconomic regulation.