Hanoi (VNA) – Foreign experts have appreciatedVietnam’s economic governance policies to help well control the impact of importedinflation, given increasing inflation in many countries around the world.

However, in face of existing risks, rising pressure on domesticinflation and the Vietnamese currency, the dong, the country’s fiscal and monetary policiesare recommended to be cautious and flexible.

Era Dabla-Norris, Mission Chief to Vietnam and DivisionChief in the International Monetary Fund (IMF)'s Asia and Pacific Department, affirmedthat effective policies applied by the Vietnamese Government have contributedto the country's positive good economic results so far this year.

The first nine months of 2022 saw a rapid recovery of theVietnamese economy when COVID-19-related restrictions were removed.

The gross domestic product (GDP) in the first three quartersof this year expanded 8.83%, motivated by strong production and export as wellas the growth of retail and tourism.

Dabla-Norris said that Vietnam’s inflation has stayed at alower level than the majority of countries in the region.

Highlighting some policies that have contributed to theeconomic results so far this year, she touched upon the Vietnamese Government’sswitching of the COVID-19 control strategy and the complete reopening of thecountry’s economy in March thanks to the super-fast vaccination campaign. Thiswas the key for the resumption of economic motivations, she held.

The expert also underlined the country’s low interest rateand responsive monetary policies that have allowed businesses to return tooperation, along with tax cuts to support labourers, including income andenvironmental taxes, to minimise the impacts of the global petrol price hike,and price freezes for some services, including power, healthcare and education,which have contributed to keeping inflation under control.

Sharing the same view, Chief economist of the AsianDevelopment Bank (ADB) office in Vietnam Nguyen Minh Cuong said the StateBank of Vietnam (SBV)’s raising the ceiling deposit and lending interest rates,and widening the exchange rate band from +/-3% to +/-5% is completely appropriate,contributing to stabilising macro conditions for medium and long-term growth.

Andreas Hauskrecht, Clinical Professor of Business Economicsat the Kelly School of Business under the US’s Indiana University, said thatVietnam has done well in curbing inflation, as it is maintained at a low andstable level.

He spoke highly of the central bank’s decisions, andmanagement agencies’ efforts to well address the pandemic’s consequences.

However, the IMF representative pointed to a number ofchallenges that Vietnam is facing, and gave recommendations,especially on monetary and fiscal policies. She also welcomed the expansion ofthe trading band for the exchange rate recently, and advised Vietnam tomaintain inflation at around 4% in 2023.

She underscored the need to maintain flexible policies andthe stability of the financial system, along with the improvement of thebusiness environment and the productivity of domestic firms as well as thecapacity of labourers, and continuous economic digitalisation. Vietnam shouldalso focus more on implementing reform policies in climate change to completeits target of net-zero emissions in 2050, she added.

In its latest global economic outlook report, the IMFpredicted that the world economy will see a fall of 2.7%, while Vietnam willenjoy a growth of about 5.8%.

Hauskrecht said that, until the time when the US FederalReserve (Fed) starts to change monetary policy and lower interest rates,Vietnam will have more room to introduce more stimulus measures. He advised thecountry to keep interest rates stable and have reasonable fiscal policy andprudent monetary policy in the immediate future./.