Inflation in Vietnam dropped for the sixth consecutive month to its lowest level in nearly a year. This is confirmed by official data, after months of efforts by Hanoi to achieve greater economic stability. The figure itself remains high: consumer prices rose 16,44% yoy, but down from 17,27% in January 2011. Last year, inflation in the communist country was among the highest highest in the world, having peaked at 23% in August. Vietnam has refocused executive efforts from supporting growth to greater stabilization to address a number of challenges.
Aside from inflation, Hanoi has had to deal with dwindling foreign reserves, a trade deficit and downward pressure on the local currency. Despite the achievements on the inflation front, experts say much remains to be done. "There are signs - explains a senior banker from Hanoi who wants to remain anonymous - that there will be more and more loans at lower rates offered by commercial banks that want to promote production and business. However, it is still too early to understand whether the country's economic situation will improve in the coming months". Vietnam's economic growth slowed to 5,9% in 2011, just below the government-imposed 6% target. Hanoi has announced that for 2012 it expects an increase in GDP of between 6 and 6,5 percent.
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