556
The Great Recession and Developing Countries
Table 12.3. Structure of Investment by Ownership, 1995–2008 (% using current prices) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total
100
State sector
42.03 49.08 49.43 55.52 58.67 59.14
100
100
100
100
100
100
100
59.81
57.33 52.90 48.06
100
100
100
100
100
47.11
45.74
37.21 28.55
100
State budget
18.74 22.36
21.75 22.45 24.21 25.80 26.74 25.09 23.82 23.79 25.63 24.76 20.17
16.18
State credit
8.37
9.47
11.72
15.71
18.83
18.37 16.85
17.46 16.30
14.92
17.24 15.96
17.36
15.63
14.97
14.78
Owned equity of SOEs
16.22
12.78
12.25 10.48
6.63
5.73
4.10
12.03
14.35
11.31
8.28
11.00
Nonstate sector
27.61 24.94 22.61 23.73 24.05 22.88 22.59 25.29 31.09
37.73 38.00 38.05 38.47 39.96
Foreign invested sector
30.37 25.97 27.96 20.75
14.21
17.28
17.97
17.60
17.38
16.01
14.89
16.21 24.32
31.49
Source: GSO, http://www.gso.gov.vn, and authors’ calculations. Note: Data for 2006 adjusted by Vietnam Development Bank.
investment
08 20
20 07
05
06 20
20
04 20
20 03
01
gross savings
20 02
20
20 00
99 19
98 19
19
19
97
50 45 40 35 30 25 20 15 10 5 0 –5 96
% GDP
Figure 12.3. Vietnam Investment-Savings Gap, 1996–2008
gap
Source: World Bank Data Catalog.
mounting inventories, budget allocations for poverty reduction programs, raising wages and salaries, encouraging people to consume, and providing partial support to help enterprises expand their exports. This stimulus had a positive impact on the economy, minimizing deflation and economic stagnation.15 Vietnam’s saving-investment gap has undergone considerable change (figure 12.3). In the mid-1990s, the gap was as large as 7.6 percent of