However, "there is no risk of high inflation" this year and next because global rises in fuel and commodity prices would not be "dramatic", the Thoi Bao Kinh Te Vietnam newspaper quoted a report by the government's National Financial Supervisory Commission as saying.

The new inflation forecast for this year is below a target by the government to keep inflation at about 7 percent this year.

"There will be no debt crisis and no big problem in the banking system," the report said.

"In the medium term the prospect for the financial system is stable," the report said.

Reuters - September 10, 2009