## Vietnam: Selected Issues

_IMF Staff Country Reports, September 27, 2024_

## Source details

**Canonical URL:** [Vietnam: Selected Issues](https://www.imf.org/en/publications/cr/issues/2024/09/27/vietnam-selected-issues-555684)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/09/27/vietnam-selected-issues-555684/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/09/27/vietnam-selected-issues-555684/index.json)
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## Bibliographic details
- Published: September 27, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400290503.002

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### Summary of analysis and findings
- The paper overviews the different tools employed by the State Bank of Vietnam (SBV) and empirically analyzes the monetary policy transmission mechanism, comparing the effects from different SBV rate shocks.
- The results indicate that the monetary policy’s interest rate channel affects main financial variables, but there are other factors in the transmission that curtail its effectiveness.
- Transmission to inflation or industrial production is generally weak, with only the combined repo/SBV bill rates generating a statistically significant effect.
- These findings stress the importance of modernizing SBV’s monetary policy framework to strengthen its transmission mechanism and better achieve its goals.

### Policy implications and recommendations
- Modernize the SBV’s monetary policy framework to strengthen transmission and better achieve objectives.
- Adopt a clear communication strategy that is easy to understand.
- Move toward having one main policy rate employed to achieve one main objective, and conduct open market operations to make the policy rate effective throughout the economy.
- Achieving the above would supply the SBV with a stronger monetary policy framework and greater ability to weather future shocks.

### Subjects and keywords
- Subjects: Central bank policy rate, Currency markets, Financial institutions, Financial markets, Financial services, Inflation, Prices, Securities markets, Sovereign bonds
- Keywords: Central bank policy rate, Currency markets, Global, government bond market, Inflation, market size, Policy trade-off, Securities markets, Southeast Asia, sovereign bond market, Sovereign bonds, Vietnam's government bond bond market

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## Content in this bundle

- **Vietnam: Selected Issues; IMF Country Report No. 24/307; July 31, 2024**
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  - [Vietnam: Selected Issues; IMF Country Report No. 24/307; July 31, 2024 (PDF)](/-/media/files/publications/cr/2024/english/1vnmea2024002-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2024/09/27/vietnam-selected-issues-555684_