Abstract
This 2012 Article IV Consultation focuses on the financial sector and macroeconomic situation in Vietnam. The authorities adopted a stabilization package in February 2011 in response to increasing pressures on prices and the exchange rate in late 2010. Executive Directors commended the tightening of macroeconomic policies in 2011, which contributed to declining inflation, stabilizing the exchange rate, and a rebuilding of international reserves. Directors also recommended that monetary policy give priority to reducing inflation and rebuilding reserves further.
1. This statement provides information that has become available since the staff report (SM/12/95) was circulated to the Executive Board on April 30, 2012. This information does not alter the thrust of the staff appraisal.
2. Inflation has continued to decelerate. Inflation slowed to 8.3 percent (y/y) in May, the first time in single digits since October 2010.
3. The authorities revised their estimate of the current account for 2011. Instead of a deficit of $0.7 billion (0.5 percent of GDP), the current account now shows a surplus of $0.2 billion (0.2 percent of GDP). This revision does not change overall gross international reserves accumulation, which remains at $13.5 billion.
Summary Balance of Payments, 2011
(In billions of U.S. dollars, unless otherwise indicated)
Summary Balance of Payments, 2011
(In billions of U.S. dollars, unless otherwise indicated)
| 2011 | |||
|---|---|---|---|
| Revised | Previous | ||
| Current account balance | 0.2 | –0.7 | |
| Of which: Trade balance | –0.4 | –0.4 | |
| Capital and financial account balance | 6.4 | 5.4 | |
| Errors and omissions | –5.5 | –3.6 | |
| Memorandum items: | |||
| Gross international reserves | 13.5 | 13.5 | |
| In months of prospective GNFS imports | 1.3 | 1.3 | |
| Current account balance (in percent of GDP) | 0.2 | –0.5 | |
| Capital and financial account balance (in percent of GDP) | 5.2 | 4.4 | |
Summary Balance of Payments, 2011
(In billions of U.S. dollars, unless otherwise indicated)
| 2011 | |||
|---|---|---|---|
| Revised | Previous | ||
| Current account balance | 0.2 | –0.7 | |
| Of which: Trade balance | –0.4 | –0.4 | |
| Capital and financial account balance | 6.4 | 5.4 | |
| Errors and omissions | –5.5 | –3.6 | |
| Memorandum items: | |||
| Gross international reserves | 13.5 | 13.5 | |
| In months of prospective GNFS imports | 1.3 | 1.3 | |
| Current account balance (in percent of GDP) | 0.2 | –0.5 | |
| Capital and financial account balance (in percent of GDP) | 5.2 | 4.4 | |