Vietnam: 2018 Article IV Consultation-Press Release and Staff Report
IMF Staff Country Reports, July 10, 2018
Source details
- Canonical URL
- Vietnam: 2018 Article IV Consultation-Press Release and Staff Report
Other formats
Bibliographic details
- Published: July 10, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484367155.002
Summary findings
- 2017 was a bumper year of broad-based and non-inflationary growth.
- Reforms continued, including in the banking sector, privatizations and cuts in red tape.
- Momentum is expected to continue, aided by reforms, higher potential output, and the global recovery.
- Economic distortions and capacity constraints remain, as do external and domestic risks and longer-term challenges.
- The strong economy provides an opportunity for additional reforms to boost investment, ensure durable growth and resilient balance sheets, and reduce the external surplus.
Economic performance and drivers
- Broad-based growth in 2017 coupled with low inflation (described as "non-inflationary growth").
- Ongoing reform areas highlighted: banking sector, privatizations, reduction of red tape.
- External environment: global recovery expected to support momentum.
Risks, constraints, and longer-term challenges
- Persistence of economic distortions.
- Capacity constraints limiting further expansion.
- External and domestic risks remain material.
- Longer-term challenges associated with sustaining growth and ensuring financial sector resilience.
Policy implications and recommendations
- Use the window of strong economic performance to:
- Boost investment.
- Ensure durable growth.
- Strengthen resilient balance sheets.
- Reduce the external surplus.
- Continue reforms in the banking sector.
- Pursue privatizations and further cuts in red tape to improve efficiency.
Content in this bundle
- Country Report