Vietnam: Selected Issues

IMF Staff Country Reports, July 5, 2017

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This Selected Issues paper analyzes the impact of environment and climate change on Vietnam’s economic growth.
Vietnam’s economy and population are expected to be increasingly affected by climate change.
The country’s growth model—which permitted quick reduction of poverty—has been unsustainably relying on mining and natural resources.
The level of air, land and water pollution has increased in the country.
The government has undertaken numerous initiatives and programs to adapt the economy to climate change risks and transform the growth model to support an environmental-friendly economy, but significant challenges remain.

Climate change impacts:
- Increasing effects on Vietnam’s economy and population are anticipated.
Growth model sustainability:
- Rapid poverty reduction occurred under a growth model with heavy reliance on mining and natural resources.
- Dependence on natural-resource extraction is characterized as unsustainable in the long term.
Environmental degradation:
- Air, land, and water pollution levels have increased.
Government response:
- Numerous initiatives and programs have been undertaken to adapt to climate change risks and to transform toward an environmental-friendly economy.
- Despite initiatives, significant challenges persist.

Subject: Aging, Banking, Climate change, Credit, Environment, Financial institutions, Money, Nonperforming loans, Population and demographics
Keywords: A. climate change, Aging, Central and Eastern Europe, Climate change, climate change financing, climate change risk, CR, Credit, credit misallocation, Europe, Global, IMF staff calculation, ISCR, Mekong, Nonperforming loans, Southeast Asia, Vietnam