Viet Nam: Second Financial Sector Program Loan Cluster—Subprograms 1 and 2

Evaluation Document | 10 December 2012
Validates the completion report's assessment of the program which aims to support the government of Viet Nam's efforts to enable the development of alternative channels of market-based financial intermediation. IED overall assessment: Successful

The government of Viet Nam had made efforts to modernize and transform the finance sector, recognizing its significance to the country's economic performance. Nonetheless, many factors inherited from the former centrally-controlled economy plagued the formal financial system and it remained underdeveloped, inefficient, and inaccessible to many. Financial intermediation was low and was dominated by bank savings and loans. The banking system, with its high levels of nonperforming loans, was unable to fully support economic development and generate employment. The government initiated the process of financial and operational restructuring of the banking subsector with assistance from the International Monetary Fund and the World Bank; the program complemented this process. Alternative channels of financial intermediation needed to be developed to support Viet Nam's broad-based economic growth and socioeconomic development objectives. This report validates the completion report's assessment of the program which aims to support the government of Viet Nam's efforts to enable the development of alternative channels of market-based financial intermediation. IED overall assessment: Successful

Contents 

  • Project Basic Data
  • Project Description
  • Evaluation of Performance and Ratings
  • Other Performance Assessments
  • Overall Assessment, Lessons, and Recommendations
  • Other considerations and Follow-up