Vietnam

This paper investigates the differential impacts of foreign ownership on wages for different types of workers (in terms of educational background and gender) in Vietnam... Show More + using the Vietnam Household Living Standards Surveys of 2002 and 2004. Whereas most previous studies have compared wage levels between foreign and domestic sectors using firm-level data (thus excluding the informal sector), one advantage of using the Living Standards Surveys in this paper is that the data allow wage comparison analyses to extend to the informal wage sector. A series of Mincerian earnings equations and worker-specific fixed effects models are estimated. Several findings emerge. First, foreign firms pay higher wages relative to their domestic counterparts after controlling for workers’ personal characteristics. Second, the higher the individual workers' levels of education, the larger on average are the wage premiums for those who work for foreign firms. Third, longer hours of work in foreign firm jobs relative to working in the informal wage sector are an important component of the wage premium. Finally, unskilled women experience a larger foreign wage premium than unskilled men, reflecting the low earning opportunities for women and a higher gender gap in the informal wage sector. Show Less -

The Executive Directors approved a First Economic Management and Competitiveness Credit Development Policy Operation Project for the Socialist Republic of Vietnam in... Show More + the amount of SDR 162.7 million (US$250.0 million equivalent) on the payment terms and conditions set out in the President’s Memorandum. Directors expressed support for the operation’s objectives to boost growth and poverty reduction by enhancing competitiveness. Directors welcomed the support this operation provides for deepening dialogue with the Government on such critical reform areas as state owned enterprises, the financial sector, and fiscal policy. They also stressed the need for strong government ownership and continued Bank support to sustain and accelerate the momentum of this new wave of reforms. Regarding future operations, they highlighted the importance of incorporating the recommendations of the Financial Sector Assessment Program and the need to consider poverty and social aspects including gender inequality issues. Directors furthermore urged attention to capacity building to support reforms. Lastly, Directors welcomed collaboration with the International Finance Corporation (IFC) and appreciated the close dialogue with the International Monetary Fund (IMF) and other donors. Show Less -

This paper includes three parts: external economic environment, part one includes: global environment, regional environment, and risks. Vietnam's recent economic development,... Show More + part two includes: a relatively stable macroeconomic situation, growth at record low, booming exports despite a slowing economy, sharp turnaround in external accounts, inflation dynamics, monetary policy, fiscal policy, and near-term outlook. Structural reforms and medium-term outlook, part three includes: context, restructuring of state-owned enterprises, banking Sector development, and poverty reduction. Show Less -

Multilateral Development Banks (MDBs) finance a significant share of developing country water sector investments in Vietnam. Much of this financing is concessional and... Show More + often on-lent by national governments, at similar concessional terms, to water utilities. This concessionality carries an implicit subsidy, i.e., the difference between MDB financing terms and commercial financing terms priced more in line with the underlying credit risks. As such concessional financing is most often used for capital investment projects, the implicit subsidy can be considered a capital subsidy. This working paper asks whether there is an opportunity to increase the value of concessional financing for water sector investments by making implicit capital subsidies more explicit and targeting them to a clearly defined public policy objective. Specifically, the paper (i) considers the extent to which implicit subsidies exist in MDB lending for the water sector; (ii) identifies a possible approach to quantify the amount of subsidies involved; (iii) outlines an emerging framework to make subsidies more explicit as a basis for improved targeting; and (iv) discusses operational implications. By investigating these issues, the paper intends to be a first step for governments and donors to evaluate how best to use the implicit capital subsidies provided by concessional financing in the water sector. The paper also suggests areas of future research. Show Less -

The World Bank (WB) Group has been a close companion to Vietnam over the last decades in support of its development path with enormous contributions not only for Vietnam's... Show More + efforts to transition from a poor, low income country to a Middle-Income Country, but also supporting Vietnam to go two-thirds of the way to achieve the Millennium Development Goals as of 2010. The Government and the World Bank want to mark this event through an overall assessment of the partnership between the two sides during the history of bilateral relations of more than three decades, pointing out positive impacts of this partnership on socio-economic development and poverty reduction in Vietnam. On that basis, it will summarize the experiences and draw useful lessons for the development of the continued strategic partnership between Vietnam and the World Bank in the new stage of development of Vietnam. The report 'Vietnam World Bank: long-term companions in development' is based on research, synthesis, analysis and assessments of WB activities in Vietnam and consultations with experts on the relationship between Vietnam and the World Bank. The achievements that Vietnam has gained are thanks to appropriate development policies of the Party and State, the efforts of hard work and creativity of the people and authorities, as well as to the sympathy and support of international friends, including the World Bank Group. Generally, the relationship between Vietnam and the World Bank Group can be divided into two phases. In the first period, , the relationship between Vietnam and the World Bank enter a very difficult stage, starting in 1978 when Vietnam embarks on a military intervention in Cambodia to help people of the neighboring country escape from persecution. Vietnam and the World Bank maintained the exchange of official delegations to learn about Vietnam and obtain a better understanding WB and its support activities in poor countries. The second phase of the Vietnam-World Bank relationship started with the WB's Country Assistance Strategy (CAS) in 1994. This CAS was based on research results, reviews and consultancies on Vietnam and Vietnam's economy made by the Bank, especially in the late 1980s. Show Less -

By the year 2020, Ha Long will be a city of tourism, a center of seaborne commerce, a commercial capital and playing the role of a core urban area in the Northern region... Show More + of Vietnam. It will be a place that will attract investment and tourism from all over the world with a growing, dynamic, stable economy which is environmentally friendly. Ha Long city will become an urban development co-existing harmoniously with the Ha Long Bay World Heritage Site. It will be a technological showpiece, equipped with the latest technical and social infrastructure meeting international standards It will be an eco-urban example of how to exist within a special heritage and culture and will ensure a high standard of living for all of its residents. Show Less -

Prospects for the global economy have become less certain in the second half of 2011, with significant increase in downside risks. Developing countries in East Asia... Show More + are growing faster than developed countries, but they too are facing challenges due to a combination of reasons including: slower expansion in demand in developed countries; the impact of global uncertainty on investor sentiments; natural disasters; and the withdrawal of stimulus policies. Vietnam's growth slowed in 2011 compared to 2010, though it is still expected to reach around 5.8 percent. The external sector has remained relatively stable. The current account deficit declined in 2011, as export performance outpaced imports and remittances grew robustly. Both import and export values saw a dramatic rise, mostly because of higher commodities prices. External debt remains sustainable, as the current account deficit was more than covered through medium-term capital inflows that are largely non debt-creating (foreign direct investments) or contracted on concessional terms (official development aid). Foreign direct investment inflows continued at a steady pace, although new commitments declined. International reserves increased in the first half of the year while the Vietnamese dong benefitted from a period of relative calm. In the last quarter of the year, however, exchange rate fluctuations increased due to volatility in gold prices, deepening uncertainties and the seasonal increase in demand for foreign currency as the year end approaches. In the longer run, Vietnam's ambition to maintain high growth into the next decade will require as bold a set of reforms as the one adopted with Doi Moi. The challenge is arguably more difficult than the previous one, and few countries in the world have accomplished it. Vietnam is endowed with a young and hard-working labor force. This is a vital asset to meet the country's ambitious goals, if the country manages to equip itself with relevant skills, and match it with necessary capital. It also needs a level-playing field to maximize its potential. As people become more educated and production becomes more sophisticated, demands for predictability, trust and a level playing field will grow. Transparency is a critical element in this. Concentration of economic power in a small number of large firms undermines efforts at creating a level playing field. Large firms and industries that circumvent rules to their advantage are promoting corruption, and undermining efficiency, which damages the country's potential. The governance challenges are complex, but Vietnam's medium term outlook will be much better if they are addressed sooner rather than later. Show Less -

In 2010, after two decades of rapid economic growth, Vietnam passed the threshold to become a lower-middle-income economy. Sustained market-oriented reforms combined... Show More + with intensive efforts to integrate into the world economy are among the key drivers of this achievement. The reform of tax policy and administration has been a vital part of this transition. This is leading to a fundamental change in the composition of taxpayers, from large state-owned enterprises (SOEs) and foreign-invested companies to a myriad of small and medium private enterprises. Economic transition is also leading to an equally important change in the sources of government revenue, away from cross-border trade-related taxes and revenue collection from crude oil toward a greater share of domestic tax revenue, in particular taxation of business profits, labor income, and capital gains on land. However, completing the transition to a market economy will require changes going beyond tax collection and administration procedures, and will involve changes to the tax instruments themselves. At the end of this process, Vietnam should have a set of taxes that is simple and transparent, secures a stable flow of revenues for the government, encourages an efficient allocation of resources, and does not risk constituting a source of inequality or unfairness. The purpose of the series of studies in this volume is to shed light on the issues Vietnam will be facing in the process of reforming its tax policy and administration. The studies are also expected to lead to concrete policy recommendations contributing to the preparation of key policies and legislative documents to ensure the achievement of the state budget revenue target and other tax administration reform targets in the SEDP 2011-2015. It is expected that the individual studies in this series will become useful inputs into the debate surrounding the issuance of new laws and regulations. It is also hoped that the volume will support the reform momentum in the tax policy area, leading to increased efficiency, transparency, and equity. Show Less -

There have been important changes in the budgeting process in Vietnam since 2006 when the government of Vietnam instituted a revolutionary reform in the management and... Show More + allocation of the state budget. For the period of 2007-2010, the norms include ethnic minority population data, and poverty rates. The purpose of this research assignment is to describe the evolution of budgeting mechanisms in recent years, in association with capital expenditure transferred from central to provincial budgets. This report focuses on changes in the budgeting process and allocation norms. It is also assesses whether these recent changes are pro-poor, and how they would affect availability of resources for the national targeted programs. Show Less -

The objective of this report is to undertake and present a financial analysis of the proposed Trung Son Hydropower Project (the project) that meets the appraisal requirements... Show More + of the World Bank. The Government of Vietnam (GOV) has requested that the Bank consider the provision of a loan to the Socialist Republic of Vietnam for the funding of a portion of the cost of the project. The loan is to be provided by the International Bank for Reconstruction and Development (IBRD) and onlent to Vietnam Electricity (EVN), the project owner. In addition to this introductory section, our report is presented in three sections as follows: section two, scope and key assumptions; section three, project financial analysis; and section four, project company financial projections. In addition to the main text of this report, annex A provides a presentation of the detailed projections employed in undertaking the project financial analysis. Annex B provides projected financial statements (income statement, balance sheet, cash flow statement) for the project company. Show Less -