Greece crisis to have muted global impact, experts say

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Greece's debt crisis will not cause a global economic downturn again but will slow down the ongoing recovery, experts said.

Nitin Jaiswal, head of Bloomberg's Asia Pacific Market Specialist Group, said the European Commission and the International Monetary Fund have made efforts to curb the impact of the crisis of government debt in Europe and prevent another worldwide economic crisis.

He said in a meeting with Vietnamese investors in Ho Chi Minh City last week that the two institutes had worked out a rescue package worth €1 trillion (US$1.23 trillion), consisting of €750 billion from the EC and €250 billion from IMF.

Jaiswal said the eurozone crisis has also affected Vietnam, mainly its stock market. The VN-Index dropped 10 percent in one month, while global stocks fell 7.6 percent in the same period.

Le Ba Hoang Quang, director of Sacombank Securities Joint Stock Company in Hanoi, said the drop of the VN-Index was caused by local investors' "excessive cautiousness."

They were too sensitive to the crisis, he said.

While the Vietnamese economy was open, it has not been affected much by the European government debt crisis since it links with the eurozone only in trade and investment and not finance.

Vietnam has mainly exported seafood and agricultural products, garment and shoes to the European market including the countries undergoing the current crisis.

However, the products were essential to customers in their daily lives and able to avoid serious impacts of the crisis, he said.

Vietnam earned $3.1 billion from exports to the bloc in the first four months, a 4.2 percent increase year-on-year, according to the General Statistics Office.

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