June 12, 2012
Vietnam to Cut Policy Rates One Percentage Point Monday
Snip ~ "Vietnam's economy suffers from an entrenched trade deficit and low confidence in its currency, which has forced the government to devalue the Vietnamese dong several times. It also faces problems with nonperforming loans at some financial institutions and has been fighting to contain asset bubbles that emerged when rates were slashed a few years ago, analysts say.
To help cope with those problems, the government last year unveiled a range of policies including pledges to control credit growth, boost domestic production and curb the trade deficit. The central bank also raised benchmark interest rates, which helped control inflation but also slowed the economy"
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