Moving mountains to our needs: the International Monetary Fund (IMF)-backed three-year Poverty Reduction and Growth Facility programme was set up in April last year to reduce poverty by stimulating national economic growth. Susan J. Adams assesses the opening stages of the project. (Economic Review).

Vietnam Investment Review, February, 2002 by Susan J. Adams

THE government and the International Monetary Fund anticipated 2001 would be a good year for the three-year Poverty Reduction and Growth Facility (PRGF) arrangement for $368 million approved by the IMF Executive Board in April last year. And they were proved right.

The PRGF-supported programme is aimed at bringing Vietnam's growth closer to potential and reducing poverty through boosting non-state investment and competitiveness of the economy. Key programme elements include maintenance of macroeconomic stability, accelerated reforms of state-owned commercial banks (SOCBs) and state-owned enterprises (SOEs), promotion of nonstate sector development and liberalisation of the trade and exchange rate regimes.

During 2001, inflation is estimated to have been at...