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IMF wraps up Vietnam mission, key takeaways from team lead statement

The International Monetary Fund has wrapped up a four day consultation in Vietnam led by the intergovernmental body’s Paulo Medas. The consultation included meeting with the State Bank, Prime Minister, Ministry of Finance and a handful of other government agencies.

A statement from Medas at the conclusion of the consultation has several noteworthy points:

  • Vietnam’s external current account surplus in 2023 was mostly due to a significant contraction in imports. (This is inline with similar assertions made by S&P Global in its monthly Purchasing Managers’ Index reports. This could be problematic, in that it may lead to a current account deficit as exports recover and firms scale up, moving forward).
  • GDP growth will be close to 6 percent this year. 
  • Domestic demand growth is expected to remain subdued.
  • “A stronger insolvency framework and debt enforcement would help to accelerate corporate restructuring and make the financial system more resilient.” (For some context see: Insolvency in Vietnam 2024: Unpacked).
  • “Developing a market-based sovereign bond market is vital to facilitate broader capital market development and to make monetary policy transmission more effective.”

Full statement: IMF Staff Completes 2024 Article IV Mission to Vietnam

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