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Viet Nam works to reduce world oil price impacts

24/10/2007 -- 11:15 AM

New York (VNA) – Viet Nam is doing its best to reduce the impacts of the world oil price on its economy by building its own oil refineries and make use of other energy resources, said a Vietnamese official.

Responding to reporters after attending the fourth ASEAN Finance Ministers’ Investor Seminar in New York on October 23, Deputy Finance Minister Tran Xuan Ha said that the world oil price hike has in many ways influenced the country’s economy as Viet Nam is both oil importer and exporter.

Increased oil price has led to a rise in the State budget of Viet Nam because crude oil accounts for one-third of the budget. However, it also increases spendings on petrol imports, Ha said.

While answering Viet Nam News Agency’s reporter, the deputy minister affirmed that Viet Nam ’s financial market is well developing as the US real estate market has not considerably impacted the domestic market. Despite a slight increase in bond’s interests, the domestic stock market is busy. The equitisation of state-owned enterprises also helped boost the financial market. Moreover, indirect investment flow from outside has increased steadily.

In terms of regional financial cooperation, ASEAN member countries agreed to work together to develop financial, capital and stock markets with a view to establishing a common bond market, first for government bonds, Ha said.

He also spoke of the need to set up funds for infrastructure development in the region.

About the possibility of another financial crisis in the region, he said it is not likely as the regional economy has acquired large foreign currency reserve and adopted healthy economic and financial policies.-Enditem

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