Vietnam has made some progress in
stabilizing its economy but has more difficulties to overcome, donors said at
the mid-year Donor’s Consultative Group Meeting held in Ha Tinh yesterday.

Deputy PM
Nguyen Sinh Hung said foreign reserves increased by US$2 billion in the first
five months.

The fiscal
deficit was likely to be 5.3 percent of GDP this year and the government hoped
to reduce to reduce it to below 5 percent, he added.

Deputy
governor of the State Bank of Vietnam Nguyen Van Binh said the gap between
official and black-market exchange rates had narrowed since the implementation
of Resolution No.11.

The donors
hailed the positive impacts of Resolution No.11 on curbing inflation and
stabilizing the economy.

But they
listed some negatives that threatened the success of Resolution No.11.

Benedict
Bingham, senior resident representative of the International Monetary Fund,
said:

“The
stability of the dong is temporary and Vietnam’s economy is still
unstable.”

Australian
ambassador Allaster Cox said: “The government has to attract the participation
of the private sector in the fight against inflation.”

It also
needed to improve the effectiveness of state-owned enterprises, he added.

The British
and EU ambassadors said investors were concerned about the lack of transparency
in economic information.

Hung
assured the donors that the government would continue to use public funds
effectively, reduce the fiscal deficit, and support small and medium-sized
firms.

Source: Tuoi tre