IMF: Vietnam’s Inflation Risks Are Under Control, but Monetary Policy May Need Adjustment if Price Pressures Rise
An IMF representative said Vietnam has kept inflation risks under control but should remain alert to rising price pressures and adjust monetary policy prudently. The two sides also discussed Vietnam’s 2027 growth targets, foreign exchange reserves and banking sector risks.
On November 13, Vietnamese Deputy Prime Minister Nguyễn Văn Thắng met with the International Monetary Fund’s (IMF) 2026 Article IV consultation delegation. Delegation head Martin Sommer said Vietnam’s inflation risks are currently well controlled, but some factors could still push up prices. Monetary policy should be managed prudently and adjusted promptly if inflationary pressures rise.
Vietnamese Deputy Prime Minister Nguyễn Văn Thắng meets Martin Sommer, head of the IMF Article IV consultation delegation, on November 13.（VietVance）
Martin Sommer said Vietnam is one of the world’s faster growing economies and has a positive outlook. He praised the government for maintaining macroeconomic stability while promoting growth, advancing structural reforms and implementing policies to support people’s livelihoods. He also urged Vietnam to closely monitor the implementation of its 2027 growth plans amid considerable uncertainty in the international economy.
Vietnam’s targets for 2027 include GDP growth of at least 10%, GDP per capita of about US$6,100 and inflation of around 4.5%. Total investment across society is expected to equal 36% to 38% of GDP. Nguyễn Văn Thắng said geopolitical instability in the Middle East could continue to cause energy price shocks and affect Vietnam’s inflation expectations. The government is responding through fuel price management, price stabilization tools, tax and fee measures, and targeted fiscal support.
On foreign exchange policy, Nguyễn Văn Thắng addressed the IMF’s recommendations to make the exchange rate more flexible and strengthen foreign exchange reserves. He said Vietnam would gradually increase reserves when conditions are favorable, keep the foreign exchange market operating smoothly, and improve its external balance by promoting trade, investment and tourism services.
For the banking system, the IMF recommended increasing capital and liquidity buffers and strengthening supervision and risk management. Nguyễn Văn Thắng said the government would continue to address nonperforming loans, restructure credit institutions and develop capital markets, including the securities market, to reduce reliance on bank lending.
Source: VietVance
