Kuroda suggested that Vietnam should closely combine its present monetary tightening policy with State revenue spending to better deal with the problem.

The ADB president was speaking during a meeting with State Bank of Vietnam governor Nguyen Van Giau.

Kuroda said Vietnam was putting a manageable exchange-rate mechanism well in place.

Without this mechanism, he added, the VND would be devalued, creating pressure for inflation.

Regarding the current exchange-rate mechanism, Kuroda said the nation should consider establishing a more flexible exchange-rate mechanism in future.

The ADB president also discussed the Vietnamese economy and the initial results after inflation-curbing policies were introduced.

He said the eight measures Vietnam was using were similar to those used by Japan, adding that if Vietnam stayed determined, it would be successful in curbing inflation.