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Transition Finance Country Study Viet Nam: On the threshold of transition


  • Jieun Kim
  • Konstantin Poensgen


Based on the “ABC” approach targeted to assess all available sources of financing (official development finance, private investment, domestic resources, and remittances), the Viet Nam country pilot study explores the challenges of transition finance in a middle-income country in the Asia-Pacific region. After launching a series of successful reforms beginning in the late 1980s, Viet Nam has undergone an impressive transformation, which turned the country from a centrally planned to a market-oriented economy and from a low-income to a lower middle-income country. At the same time, Viet Nam is moving from a relatively high reliance on ODA and other external sources towards non-concessional sources and domestic sources. Through evolving partnerships, development partners can align their support with newly arising needs, actively supporting Viet Nam overcome the middle-income trap and move towards a trajectory for more sustainable development.

Suggested Citation

  • Jieun Kim & Konstantin Poensgen, 2019. "Transition Finance Country Study Viet Nam: On the threshold of transition," OECD Development Co-operation Working Papers 60, OECD Publishing.
  • Handle: RePEc:oec:dcdaaa:60-en
    DOI: 10.1787/3cb86a6c-en

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    More about this item


    Addis Ababa Action Agenda; concessional finance; debt sustainability; financing for sustainable development; IDA graduation; LDC; middle-income trap; SDGs; transition finance; Viet Nam;
    All these keywords.

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H00 - Public Economics - - General - - - General

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