As it is the case with any policy-based lending, the impact and outcome of the VIE-CS loan was highly dependent on the quality of public financial management. Additional efforts in improving the efficiency and transparency of public financial management would allow even greater impact of similar fiscal stimulus programs. Key structural challenges of the Vietnamese economic system, such as the regular financing of SOEs by state-owned commercial banks, should remain a core area of analysis and reform, as such a structure may be limiting adequate market competition for available financial resources. Initiatives such as ADB's SOE Reform and Corporate Governance Facility, which supports the restructuring of state enterprises into more privately oriented institutions, are important steps in that direction.
Countercyclical Support