Vietnam: 2019 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Vietnam

IMF Staff Country Reports, July 16, 2019

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Canonical URL: Vietnam: 2019 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Vietnam

Gradual fiscal consolidation, strict limits on government guarantees, and robust growth in recent years have led to declining government debt, expected to continue under current policies.
Some fiscal space exists, but fiscal needs are large for infrastructure, social spending, and to deal with population aging.
The tightening of credit growth continued in 2018; however, liquidity remained ample, aided by the strong balance of payments and tight fiscal policies.
The State Bank of Vietnam has initiated plans to modernize its monetary framework with IMF technical support.
The authorities’ efforts to improve economic institutions and governance continue; the fight against grand corruption has resulted in significant sentences in recent high-profile cases.
Improvements in transparency and statistical systems are underway, with support from the IMF and the Financial Action Task Force’s Asia Pacific Group.

Findings:
- Gradual fiscal consolidation has contributed to declining government debt.
- Government guarantees are subject to strict limits.
- Despite some fiscal space, large fiscal needs remain for infrastructure, social spending, and population aging.
Implication:
- Continued consolidation under current policies is expected to sustain the decline in government debt.

Findings:
- Credit growth tightening continued in 2018.
- Liquidity remained ample, supported by a strong balance of payments and tight fiscal policies.
- The State Bank of Vietnam is planning to modernize its monetary framework with IMF technical support.
Subject tags included in the source: Banking, Basel II, Credit, Economic and financial statistics, Expenditure, External sector statistics, Financial regulation and supervision, Government finance statistics, Money, Public investment spending.

Findings:
- Authorities are working to improve economic institutions and governance.
- The fight against grand corruption has led to significant sentences in recent high-profile cases.
- Transparency and statistical system improvements are underway with IMF support and engagement from the Financial Action Task Force’s Asia Pacific Group.