US embassy cable - 03HANOI650

UNCLAS HANOI 000650 
 
SIPDIS 
 
PHNOM PENH PASS USAID 
 
E.O. 12958: N/A 
TAGS: EAID, ECON, EFIN, VM 
SUBJECT: VIETNAM: MILLENIUM CHALLENGE ACCOUNT DATA 
 
REF: STATE 46075 
 
1.  OVERALL BUDGET BALANCE:  The IMF and GVN track the 
overall fiscal balance in three ways: 1) overall fiscal 
balance excluding onlending and capital costs of reform; 2) 
overall fiscal balance including onlending; 3) augmented 
fiscal balance including onlending and capital costs of 
reform.  These numbers come from IMF Country Report 02/151. 
In trillions of Vietnamese Dong: 
 
Method 1:        Method 2:        Method 3 
1998 1): -0.5;   1998 2): -5.8;   1998 3): -8.2 
1999 1): -3.3;   1999 2): -10.4;  1999 3): -10.4 
2000 1): -12.0;  2000 2): -21.9;  2000 3): -21.9 
 
IMF Preliminary Estimate: 
 
2001 1): -15.8;  2001 2) -21.1;  2001 3): -21.1 
 
2.  GOVERNMENT EXPENDITURES ON HEALTH:  According to the 
Ministry of Finance budget data website, 
http://www.mof.gov.vn/solieu_e/2000.htm, the GVN spent 6.55 
trillion Vietnamese Dong in 2000. 
 
3.  GOVERNMENT EXPENDITURES ON PRIMARY EDUCATION:  According 
to the Ministry of Finance budget data website, 
http://www.mof.gov.vn/solieu_e/2000.htm, the GVN spent 
15.998 trillion Vietnamese Dong in 2000. 
 
4.  GDP:  The IMF Hanoi office provided these figures.  At 
current market prices, in trillions of Vietnamese Dong: 
 
1998: 360.6 
1999: 399.942 
2000: 441.646 
2001: 481.296 
2002: 536.097 
 
5.  A number of issues with the above data exist.  In 
addition to the unavailability of recent data, data is 
constantly in flux due to poor collection mechanisms. 
Furthermore, Vietnam has begun to decentralize some 
expenditures even though it has yet to establish a single 
accounting system for budget reporting, making central 
accounting even more difficult. 
PORTER