Gov't not concerned about inflation, but road to growth a rocky one

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Vietnam's government said Thursday that rising inflation in September was no cause for panic but that it would be difficult to achieve the country's economic growth target of 5.2 percent this year.

Recent gains in consumer prices have prompted the government to review its policies and see whether inflation has turned into a real problem, Minister Vu Duc Dam, head of the government office, told a press briefing in Hanoi.

The government can ensure that inflation will be controlled, he said, adding that policy will be flexible to meet the 8 percent inflation target. 

"Controlling inflation is a priority, not just for this year but for the next year as well, to ensure increased stability for the economy," Dam said.

Consumer prices in September this year were 6.48 percent higher than they were a year earlier, the General Statistics Office said this week.

Prices rose 2.2 percent in August, which was the most since May 2011, according to Bloomberg data. 

The government said Vietnam's GDP, the broadest measure of the economy, grew 4.73 percent in the first nine months compared to a year ago. Growth slowed from 5.77 percent recorded in the same period last year.

"The government is determined to achieve 5.2 percent GDP growth this year, but it will be very difficult because that means each of the three remaining months has to record a 6.5 percent growth," Dam told the press. "So on one hand it's necessary to continue with the tight policy, but on the other hand we need to be flexible to meet the growth target."

He said Vietnam's economy is very "open" to the global economy so it only fares well when global situations are good.

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