Former Deputy Prime Minister Vu Khoan Worried about the Currency War Consequences

Diep Nguyen

15:51 05/12/2018

BizLIVE -

Former Deputy Prime Minister said that this confrontation is not just in terms of trade but that is the all-out confrontation in politics, security and the quest for standing in the world.

Former Deputy Prime Minister Vu Khoan Worried about the Currency War Consequences

Photo: Diep Nguyen

In the Vietnam Reform and Development Forum 2018 with the focus on new vision, new drivers of economic growth in the new era, former Deputy Prime Minister Vu Khoan predicted that from now until 2030, if there the currency war occurs, no one can know how tough the consequences can be. 
When asked to give some comments on the speeches of some other previous speakers like Minister of Planning and Investment Bui Dinh Dung and World Bank economists, former Deputy Prime Minister Vu Khoan stressed that based on the predictions from World Bank (WB), International Monetary Fund (IMF) and Organisation for Economic Co-operation and Development (OECD), in the short term, though the GDP growth rates of some big economies may go down a bit but in the longer term, there is no sign of economic and financial crises.
According to former Deputy Prime Minister, looking back into history, there is the fact that every 10 years, crisis happens. People still cannot forget the oil crisis in 1973, then the economic crisis in 1980s when Japan GDP growth rate went down severely; in the 1990s, Asia experienced the financial crisis in 1997 with terrible impacts on the regional economies and then in 2000s, the world went through the global financial crisis. 
Former Deputy Prime Minister predicted that the chances of the financial crisis in the near term is quite low because the biggest economies in the world are still expanding stably. Additionally, after the 2008 financial crisis, governments around the world have applied stricter contingency policies in the financial sectors.
However, in the opinion of the former Deputy Prime Minister, from now until 2030, in case the world has to face to the currency crisis, no one can fully foretell the impacts.
After the G-20 summit in the weekend, the trade war truce between the United States and China finally got. But in the coming years, the trade war will still happen but in many forms and at various levels. 
Former Deputy Prime Minister said that this confrontation is not just in terms of trade but that is the all-out confrontation in politics, security and the quest for standing in the world. 
The old economic order has not been lost but the new world economic order is being shaped, then the world has to face to the mixed world order, both multilateral and bilateral and Vietnam must be ready to react.

DIEP NGUYEN