In a report released in Hanoi on September 22, the bank explained that the figure has been adjusted thanks to the government’s strong and swift response to the economic slowdown. However, it underscored the need for the government to strike a balance between stimulating growth through demand-side measures and safeguarding macroeconomic stability.

In the Asian Development Outlook Update 2009 (ADOU) launched in March 2009, the ADB noted that Vietnam's economy was weathering the global economic crisis relatively well. Despite the weak external environment, the economy continued expanding this year, albeit at a slower rate because expansionary fiscal and monetary policies boosted consumption and domestically financed investment. The country’s economic slowdown bottomed out early in 2009, with year-on-year GDP growth continuing to increase since the first quarter of the year.

“We would like to congratulate the government and people of Vietnam, because we can make this positive assessment as a result of the quick and strong policy measures the government has taken to minimize the adverse impact of the global economic downturn,” said Ayumi Konishi, ADB Country Director for Vietnam.

However, the bank warned that runaway would return as a result of higher global commodity prices and the rapid growth of money supply.

“We very much appreciate the fact that monetary authorities have already started to take measures to keep inflation in check, and to damp devaluation expectations. We understand the Government is fully aware of the growing risks,” said Ayumi Konishi.