JP Morgan upbeat about Vietnam’s economy

CA - Experts of Singapore-based JP Morgan Chase Bank have predicted that the Vietnamese economy will achieve a higher degree of stability in 2012 than in 2011, thanks to the government’s tight policy which has started to bear results.

They also predicted that Vietnam’s inflation will cool down, the balance of payments will be better supported, and its foreign currency reserves will increase.

Vietnam’s trade deficit will be offset by overseas Vietnamese remittances and foreign direct investment, according to JP Morgan Chase.

The bank holds that the asset quality of banks remains one of the most worrying problems of the Vietnamese economy, even though the possibility of a crisis in the banking system is low at present.