Vietnam to Use Fiscal Policy to Meet Economic Growth Target
Deputy Governor Pham Thanh Ha stated that Vietnam will prioritize expansionary fiscal policy as the room for monetary maneuvers narrows. The central bank aims to maintain macroeconomic stability while targeting a GDP growth rate of at least 10% for the year.
Vietnam will prioritize expansionary fiscal policy over monetary easing to hit its 10% GDP growth target this year. State Bank of Vietnam Deputy Governor Pham Thanh Ha stated that the room for further interest rate maneuvers has narrowed. The shift signals a move toward government spending to sustain momentum as inflation and trade deficits pressure the economy.
