Overseas deposits amount to US$7.3 billion

The amount of funds deposited overseas was inconsiderable formerly but has rocketed up recently hitting US$7.3 billion as of the third quarter last year, reported Dr. Nguyen Xuan Thanh, head of the Vietnam Institute for Economic and Policy Research at a conference on Tuesday.

According to Mr. Thanh, that is a huge number and authorized agencies should keep an eye on the trend, explain it and give forecasts.
The high increase shows that forex policies such as 0 percent interest rate for US dollar deposits have brought notable side effects. While Vietnamese have deposited thousands of billion of US dollar abroad, local banks have got loans overseas.
At the conference hosted to review macroeconomic conditions in the first quarter, Mr. Thanh said that economic growth reached only 5.46 percent, lower compared to the same period last year.
Although the rate is usually lower in the beginning quarters of a year and higher in later quarters, it is still worrying because of industrial decline, agricultural difficulties and the high number of dissolved and shutdown businesses, he added.
In addition, inflation has been on the danger of rising back and in fact it hiked nearly 1 percent in the first quarter. Oil price has dropped to its bottom and might inch up. Farming production has been effected badly by disadvantageous weather which will impact inflation in the next quarter, Mr. Thanh commented.

The bright spot of the economy was stable and growing foreign direct investment capital.

By Anh Phuong – Translated by Hai Mien

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