Vietnam International Political Economy

The Vietnam government and the Vietnam Central Bank announced they will borrow as much as $1 billion from the World Bank in order to boost foreign exchange reserves according to Reuters.

Key drivers of the move by the Vietnam government to borrow from the World Bank is the continued decline in Vietnam exports and Vietnam investment as the global economic crisis diminished demand along with a drop in remittances which act a another significant source of foreign exchange.

The Vietnam central bank forecasts a 2009 balance of payments deficit of $1 billion.