Macroeconomic stability in Vietnam isimproving, underpinned by moderating inflation andstrengthening external accounts. Headline Consumer PriceIndex (CPI) inflation has stabilized, aided by subduedcredit growth and easing of food price increases. Thedecline in core inflation has been more gradual. Pressure onthe Vietnamese currency has also eased substantially. Asustained recovery in Gross Domestic Product (GDP) growthremains hampered however by slow-moving structural reformsand global uncertainty. With rising pressures on the budget,the government is faced with some crucial fiscal policychoices, as it seeks to balance the objectives of economicexpansion and macroeconomic stability. This paper explorescrucial issues such as trade facilitation, competitivenessand growth, poverty and inequality, corruption and economicgrowth in Vietnam, the external economic environment, andrecent economic developments in Vietnam.
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