ADB issues warning to Vietnam on economy
Updated
The Asian Development Bank (ADB) has warned Vietnam its economy could face major problems similar to those in Thailand which precipitated the Asian financial crisis.
In its biannual Asia Economic Monitor, the ADB says Vietnam may be on the verge of a financial "disruption" similar to the 1997 collapse in Thailand.
Inflation in Vietnam is approaching an annual rate of 30 per cent and the nation's trade deficit is also growing rapidly.
The ADB says while "there are encouraging signs that tightening policies are starting to work," the Thai experience "shows that if policy responses are weak or insufficient, a crisis could easily follow."
The bank urged Hanoi to closely monitor the situation and act decisively to prevent further economic deterioration.
