After decades of preferential treatment, incentives, and subsidies, state-owned enterprises (SOEs) in Viet Nam failed to compete effectively, and their financial problems created significant fiscal risks. Having virtually no access to private capital markets, general corporations had relied on extensive borrowing from the government and state-owned commercial banks to finance their operations.
Within the past two decades, Cambodia has transformed from a post-conflict country to a small, open and vibrant economy, growing by more than 10% in 2004 and maintaining a double-digit expansion through 2007.
In 2014, Kazakhstan experienced two external shocks that impacted economic growth, revenue performance, and the government’s ability to reduce the effects through countercyclical expenditures. The first comprised spillover effects from the economic slowdown and uncertain situation of the Russian Federation, which triggered a downward adjustment in the tenge exchange rate.
Just 2−4 years after it was severely hit by the 1997 Asian financial crisis, the Indonesian economy began to steadily recover. Real gross domestic product growth rose from 0.8% in 1998 to 2%–3% during 2000–2002 and reached 5.5% in 2006. Wide−ranging finance sector reforms accounted for much of this recovery.
A healthy level of private investment is essential for Viet Nam to achieve the 7%–8% annual economic growth rate and the 8 million new jobs it has targeted under the Socio-Economic Development Strategy, 2011–2020. Increasingly, such contribution is expected to come from the domestic private sector, largely composed of small and medium−sized enterprises (SMEs).