Vietnam’s post-pandemic recovery on right track: IMF executive

Vietnam’s impressive vaccination drive and timely program for recovery and development have helped create a positive post-pandemic outlook for the country, said Antoinette Sayeh, Deputy Managing Director of the International Monetary Fund.

Sayeh made the comment during her phone talks with visiting Vietnamese Prime Minister Pham Minh Chinh in the U.S. on Monday, local time. "The Southeast Asian country’s post-pandemic recovery is on the right track."

Vietnam is a good partner of the IMF, Sayeh reiterated, noting that the IMF is ready to support the nation as suggested by the PM, including in policy consultations.

The Vietnamese PM thanked the IMF for its support to the country in accessing Covid-19 vaccines and financing, and for its advice in pandemic preparedness and control, macro-economic policy consultations, sustainable development, and monetary policy stabilization.

He suggested the World Bank's financial arm assist Vietnam in these efforts, and provide consultations, recommendations, technical support and assistance in human resource training. Chinh further called for the global fund’s support for the country’s socio-economic development while it strives to become a developing country by 2030, and a developed nation by 2045.

For the short term, the premier suggested the fund help Vietnam with consultations in ensuring macro-economic stability; developing a transparent, sustainable capital market, controlling inflation; developing logistics; technological innovation and digital transformation; climate change response; and energy transition.

The IMF, in its End-of-Mission statement for Vietnam this April, said Vietnam’s economy is rebounding from a severe pandemic wave in 2021, but the recovery has been uneven as the service sector still lags, while financial risks and inequality have likely risen.

Era Dabla-Norris, who led the IMF working delegation to Vietnam, also mentioned other risks like a tightening of global financial conditions and developments in the domestic real estate and corporate bond markets. Inflation is expected to edge up to 3.9% by end-2022. Growth risks are tilted to the downside while inflation risks are tilted to the upside, her assessment team said.

Also, on May 16 in the U.S., the Vietnamese PM met with Achim Steiner, the administrator of the UNDP, and Catherine Russel, chief executive of the UNICEF.

Steiner said he was impressed by Vietnam's flexible and proper response in the fight against the pandemic, its strong commitments in green recovery, climate change response, as well as the nation’s breakthroughs in human resources and infrastructure, along with digital economy development.