The global economic crisis has had “a considerable impact” on the country, Governor Nguyen Van Giau said in a statement posted in the State Bank of Vietnam’s website on October 14.

The central bank and ministries “have been working very hard” with international financial organizations including the World Bank and the Asian Development Bank to get more loans to cover declines in foreign exchange, Giau said.

Vietnam has borrowed $500 million from the ADB, is getting a $500 million loan from the Japanese government, and also plans to obtain a $1 billion loan from the World Bank with half of the amount to be disbursed this year, according to the statement.

A World Bank spokesman in Hanoi said the two sides were working out conditions for what he said was a “public investment reform loan,” which would directly supplement the budget.

The World Bank hoped to seek board approval for the loan before the end of the year, the spokesman said.

Economists say Vietnam has weathered the global recession relatively well, but inflows of foreign exchange have been hit.

There are signs that the limited supply of foreign exchange is taking a toll on Vietnam's reserves. In August, the central bank had forecast a $1 billion balance of payments deficit for 2009.

Source: Bloomberg, Reuters