Vietnam Faces Risk of Prolonged Slow Growth: World Bank

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Bloomberg

Vietnam’s GDP growth this year projected to reach 5.3%, compared with 5.2% in 2012, World Bank says in report released today in Hanoi. * Vietnam economic growth in 2014 seen at 5.4% * Vietnam 2013 inflation seen at 8.2%, 2014 inflation at 7.9%

* Vietnam 2013 fiscal deficit seen at 4% of GDP, current-account surplus at 5.6% of GDP * Vietnam’s macroeconomic conditions are improving, report says, citing moderate inflation, stable exchange rate, increased reserves, reduced country risks * Vietnam decision to adjust exchange rate rather than continue to defend currency was a “welcome move”

* Foreign reserves have increased to 2.8 months of imports at end of 1Q from 1.6 months in 2011 * Plan to delay requiring banks to use stricter standards for bad debt gives banks room to “flexibly interpret the loan classification system and to underreport NPLs”

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