Source: CCTV.com

06-22-2008 11:22

Vietnam is facing a whole brace of economic stumbling-blocks. And these include inflation, a weakening currency, as well as big plummets on both stock and property markets. The government is doing what it can to stabilize the situation, but they face considerable challenges.

Dong Xing port in south China's Guangxi Zhuang Autonomous Region is one of the largest trade links between China and Vietnam. Trade volumes have been falling significantly... with exports intended for Vietnam valued at up to 10 million yuan still stuck in the port. Some exporters say they hesitate to send the goods on because a weak Vietnamese currency means a big cut to profits. Many of them are holding back until they see an improvement in the situation.

Huang Chun, Chairman of Dongxun Trade Corporation said "Usually our goods are sold in two to three days. Now they have been here for over 20 days. It's had a big effect on our business, because this ties up more than 1 million yuan worth of exports."

This is just a small reflection of current difficulties in Vietnam's economy. The country saw inflation rates hitting 25.2 percent in May, the highest in years. While trade deficit reached 14.4 billion US dollars in the first five months. The Vietnamese dong is also depreciating in its value.

The government is taking macro-control measures to stabilize the economy. Those include tighter monetary policy, increasing exports and fighting inflation. These measures are paying off to some extent, with a gradual slowdown in the rate of currency depreciation. The Chinese government is also encouraging enterprises to have confidence in the country's economy, and step up trade and investment in Vietnam.

Li Zhiyong, Deputy Director of Guangxi Commerce Bureau said "We will continue to support our enterprises to invest in Vietnam. At the same time, we will step up infrastructure projects in Vietnam, including some key highways. Our enterprises will ensure that these projects go ahead smoothly."

In addition, Guangxi is working on plans to further enlarge trade and investment with Vietnam, especially boosting imports from Vietnam. China is also hosting the 6th meeting of the China-Vietnam economic and trade cooperation, due June 26th and 27th in Beijing.

 

Editor:Xiong Qu