HANOI: Vietnam will be able to achieve its economic growth target of 6.2 percent set for this year, regardless of impacts caused by China’s unexpected yuan devaluation earlier this month, the National Financial Supervisory Commission reported on Monday.
However, the advisory group noted that Vietnam’s financial markets and economy will not be much affected as long as the yuan is not depreciated much further. So far the Chinese currency has fallen 2.9 percent against the US dollar.
The government should refrain from making “significant adjustments” to its policies and plans, and continue to closely watch Chinese actions to have suitable responses, it said.
The commission’s report came a few days after many economists warned at a conference in Hanoi that Vietnam’s economic growth will likely be around 4 percent. They said production costs are set to increase after the central bank let the dong slide.
Last month the central bank devalued the dong for the third time this year. With the move, the currency has declined by more than 4 percent.
