Vietnam

Government Devalues Currency

Following on a better-than-expected performance in 2009, the economy will again experience one of the fastest growth rates in the region this year, buttressed by a rebound in both the external and the domestic sector. Against this backdrop, the government has set a 6.5% growth target for 2010. Meanwhile, the State Bank of Vietnam recently devalued its currency for the second time in three months, as the government attempts to curb increasing inflationary pressures and improve the country’s external position. Furthermore, Finance Minister Vu Van Ninh recently stated that the government will take further necessary actions to contain inflation below the 7% target this year.