Vietnam: Poverty Reduction Strategy Paper: Annual Progress Report: Joint Staff Advisory Note
IMF Staff Country Reports, February 27, 2006
Source details
- Canonical URL
- Vietnam: Poverty Reduction Strategy Paper: Annual Progress Report: Joint Staff Advisory Note
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Bibliographic details
- Published: February 27, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451840353.002
Key findings
- GDP growth accelerated to 7.7 percent.
- Acceleration occurred despite several exogenous shocks, including:
- the outbreak of avian influenza, and
- a sharp rise in the price of key imported commodities.
- An adverse consequence of these supply shocks has been a sharp rise in inflation, which tested the government’s macroeconomic policymaking ability.
- Rapid growth of credit is of concern because of a potential accumulation of nonperforming loans of state-owned commercial banks.
- Potential accumulation of nonperforming loans could ultimately become a fiscal burden and threaten medium-term debt sustainability.
Risks and macroeconomic pressures
- Supply shocks (avian influenza; sharp rise in price of key imported commodities) → sharp rise in inflation.
- Rapid credit growth → risk of nonperforming loans in state-owned commercial banks → fiscal burden risk and threat to medium-term debt sustainability.
Document metadata and key statistics
- Publication date: February 27, 2006
- Pages: 10
- Volume: 2006
- Issue: 071
- Series: Country Report No. 2006/071
- DOI: https://doi.org/10.5089/9781451840353.002
- Stock No: 1VNMEA2006005
- ISBN: 9781451840353
- ISSN: 1934-7685
International Monetary Fund. "Vietnam: Poverty Reduction Strategy Paper: Annual Progress Report: Joint Staff Advisory Note" (IMF Staff Country Reports 2006, 071).