IMF Staff Country Reports

Vietnam: Poverty Reduction Strategy Paper: Annual Progress Report: Joint Staff Advisory Note

Publication Date:

February 27, 2006

Electronic Access:

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Summary:

This paper presents a Joint Staff Advisory Note on Vietnam’s Poverty Reduction Strategy. GDP growth accelerated to 7.7 percent despite several exogenous shocks, including the outbreak of avian influenza and a sharp rise in the price of key imported commodities. However, an adverse consequence of these supply shocks has been a sharp rise in inflation, which tested the government’s macroeconomic policymaking ability. The rapid growth of credit is of concern because of a potential accumulation of nonperforming loans of state-owned commercial banks that could ultimately become a fiscal burden and threaten medium-term debt sustainability.

Series:

Country Report No. 2006/071

Subject:

Environment Poverty Poverty reduction Poverty reduction strategy