Hanoi says exports at risk from turmoil

Hanoi says exports at risk from turmoil

HANOI (Reuter): Vietnam's central bank governor has called for
measures to protect domestic goods from regional competition in
the wake of Southeast Asia's currency turmoil, state media
reported yesterday.

The English-language Vietnam News quoted Cao Si Kiem as
telling local reporters at a news conference that the State Bank
of Vietnam's exchange rate policy and controls on the use of
foreign currency had spared Vietnam from the problems afflicting
some of its neighbors.

But he said Vietnam's trade activities would be affected as a
result of competition from cheaper regional produce, and added
that steps were needed to "stem imports of unnecessary foreign
goods and promote exports".

Vietnam's currency, the dong, has not been directly affected
by the region's financial crisis which has trimmed the value of
several other Asian currencies, particularly the Thai baht.

However, the chaos and its resulting impact on Vietnam's
exports, particularly rice, has put increased pressure on the
state bank to speed the depreciation of the dong.

Kiem said the central bank had petitioned the government to
introduce policies aimed at encouraging exporters to buy goods
direct from producers, and establish rules to minimize the import
of luxury goods.

Further efforts should also be introduced to halt illegal
imports and smuggling, he said.