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Since 1993, the Socialist Republic of Vietnam has pursued a policy of restructuring its external debt in order to reduce its debt burden. In 2002, the Bretton Woods institutions prepared a debt sustainability analysis that concluded that the country was not eligible for the Enhanced Highly Indebted Poor Country (HIPC) Initiative. Furthermore, in 2003, the Vietnamese authorities approved a debt strategy for the period of 2001-2010 formulated by the Ministry of Planning and Investment (MPI). This debt strategy provides the overall objectives of the country’s borrowing objectives and volumes over the next decade. . | Staatssekretariat für Wirtschaft Secrétariat d Etat à l économie Segretariato di Stato dell economia State Secretariat for Economie Affairs seco United Nations Development Programme Project of the Government of Vietnam VIE 01 010 Capacity Development for Effective and Sustainable External Debt Management Preliminary External Debt Sustainability Analysis Report February 2005 Crown Agents Oversea Government and Administration Ltd. St. Nicholas House St. Nicholas Road Surrey Sutton SM1 1EL UK were responsible for producing this report under a contract with United Nations Development Programme for the Project VIE 01 010 Capacity Development for Effective Sustainable External Debt Management. This project is funded by the UNDP and the Governments of Australia and Switzerland with counterpart funding from the Government of the Socialist Republic of Viet Nam. This report was drafted by Michel Vaugeois and Dr. Sanga Sangarabalan of Crown Agents and approved for submission by Colin Seelig Director Institutional Development Group Crown Agents. Contract Reference VIE 01 010 Prospector T16196 Crown Agents Table of Contents Table of Contents. i List of Annexes. i List of Acronyms and Abbreviations. i Section Page 1. 2. External Debt Structure End 2003 .1 . External Debt Structure - Nominal . External Debt Structure - Present . Currency . Interest Rate 3. External Debt Restructuring And New Financing . External Debt Restructuring . New Financing 4. Macroeconomic . Recent Economic Trends 2000-2004 .9 . Scenario 1 Base . Scenario 2 . Results of the Macroeconomic 5. Financial . External Debt Sustainability . Sensitivity 6. List of Annexes AnnexA Vietnam - Nominal and NPV Debt Outstanding - End 2003 AnnexB Vietnam - Debt Renegotiations Annex C Discount and .

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