Vietnam: 2022 Article IV Consultation-Press Release; Staff Report, and Statement by the Executive Director for Vietnam
IMF Staff Country Reports, July 5, 2022
Source details
- Canonical URL
- Vietnam: 2022 Article IV Consultation-Press Release; Staff Report, and Statement by the Executive Director for Vietnam
Other formats
Bibliographic details
- Published: July 5, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400213786.002
Overview
- Publication date: July 5, 2022
- Scope: Assessment of Vietnam’s macroeconomic position entering and during the COVID-19 pandemic, evaluation of policy response, and recommendations to support recovery and bolster long-term growth.
- Context: Vietnam entered the pandemic with robust economic growth and sound fundamentals, including prolonged high growth, price stability, and low public debt ratios.
Key findings and macroeconomic assessment
- Pre-pandemic strengths:
- Prolonged period of high growth, price stability, and low public debt ratios.
- Strong foreign direct investments and trade flows that boosted external buffers.
- Banks entered the pandemic in a relatively strong position.
- Pandemic-era policy and recovery:
- The government’s new support package presents an opportunity to entrench the recovery, mitigate the scars of the pandemic, and deliver sustained and inclusive growth.
- Recovery described as strong but uneven, with heightened uncertainty.
- Monetary and exchange rate assessment:
- Monetary policy should be increasingly focused on rising inflationary risks.
- Exchange rate policy should allow for greater exchange rate flexibility.
- Reforms to modernize the monetary policy framework should continue.
Policy recommendations
- General policy stance:
- Policymaking should be agile.
- The size and composition of policy support should be calibrated to the pace of the recovery and downside risks.
- Monetary policy:
- Prioritize containment of rising inflationary risks.
- Permit greater exchange rate flexibility.
- Continue reforms to modernize the monetary policy framework.
- Structural and long-term policies:
- Decisively tackle pervasive economic dualism to bolster long-term growth and convergence.
- Boost productivity through targeted reforms.
Structural reform priorities to boost productivity and convergence
- Improve the business environment.
- Strengthen governance.
- Reduce corruption.
- Alleviate labor skill mismatches.
- Improve labor force quality.
Subject tags and keywords (as presented)
- Subject: Economic and financial statistics, Fiscal policy, Health, International organization, Monetary policy, Money, Prices, Revenue administration
- Keywords: COVID-19, Credit, External sector statistics, fiscal policy stance, Global, government financing datum, Inflation, monetary policy mix, prudent fiscal policy, U.S. dollar
Content in this bundle
- 1vnmea2022001