BALANCE OF PAYMENT

MA. THANH TRAN, VASS

thanhttm@gmail.com
 QUÝ II NĂM 2021
Đơn vị: Triệu USD
Chỉ tiêu Số liệu
A. Cán cân vãng lai -4.596
Hàng hóa: Xuất khẩu f.o.b 79.934
Hàng hóa: Nhập khẩu f.o.b 80.288
Hàng hóa (ròng) -354
Dịch vụ: Xuất khẩu 891
Dịch vụ: Nhập khẩu 4.759
Dịch vụ (ròng) -3.868

Thu nhập đầu tư (Thu nhập sơ cấp): Thu 269

Thu nhập đầu tư (Thu nhập sơ cấp): Chi 4.139

Thu nhập đầu tư (thu nhập s ơ c ấp) (ròng) -3.87
Chuyển giao vãng lai (Thu nhập thứ cấp): Thu 4.243 Chính phủ 164
Chuyển giao vãng lai (Thu nhập thứ cấp): Chi 747 Tư nhân 3.46
Chuy ển giao v ãng lai (thu nhập thứ c ấp) (ròng) 3.496 Trả nợ gốc -1.993
B. Cán cân vốn 0 Chính phủ -462
Cán cân vốn: Thu 0
Tư nhân -1.531
Cán cân vốn: Chi 0
Tổng c án c ân v ãng lai v à c án c ân vốn -4.596 Tín dụng thương mại và ứng trước
C. Cán cân tài chính 10.844 Các khoản phải thu/ phải trả khác
Đầu tư trực tiếp ra nước ngoài: Tài sản có -66 Đầu tư khác (ròng) 6.227
Đầu tư trực tiếp vào Việt Nam: Tài sản nợ 4.12
Đầu tư trực tiế p (ròng) 4.054 D. Lỗi và Sai sót -4.743
Đầu tư gián tiếp ra nước ngoài: Tài sản có 4
E. Cán cân tổng thể 1.505
Đầu tư gián tiếp vào Việt Nam: Tài sản nợ 559
Đầu tư gián tiế p (ròng) 563 F. Dự trữ và các
Đầu tư khác: Tài sản có 589 hạng mục liên quan -1.505
Tiền và tiền gửi 628
Tài sản dự trữ -1.505
Tổ chức tín dụng 1.212
Dân cư -584 Tín dụng và vay nợ từ IMF 0
Cho vay, thu hồi nợ nước ngoài Tài trợ đặc biệt 0
Tín dụng thương mại và ứng trước
Các khoản phải thu/ phải trả khác -39
Đầu tư khác: Tài sản nợ 5.638
Tiền và tiền gửi 1.951
Tổ chức tín dụng 1.951
Dân cư 0
Vay, trả nợ nước ngoài 3.687
Ngắn hạn 2.056
Rút vốn 9.069
Trả nợ gốc -7.013
Dài hạn 1.631
Rút vốn 3.624
 QUARTER II YEAR 2021
In million of USD
Standard Data
A. Current Account -4.596
Goods: Exports f.o.b 79.934
Goods: Imports f.o.b 80.288
Goods ( ne t) -354
Services: Exports 891
Services: Imports 4.759
S e rv ic e s (ne t) -3.868

Investment incomes (Primary income): Receipts 269 Government 164

Investment income (Primary income): Payments 4.139
Other sectors 3.46
Inv e s tm e nt inc om e (Prim ary inc om e ) (ne t) -3.87 Scheduled Amortization -1.993
Transfers (Secondary income): Receipts 4.243 Government -462
Transfers (Secondary income): Payments 747
Trans fe rs (S e c ondary inc om e )(ne t) 3.496
Other sectors -1.531
B. Capital Account 0 Trade credit and advances
Capital account: Receipts 0 Other accounts receivable/payable
Capital account: Payments 0
Ne t Curre nt and Capital Ac c ount -4.596 Other Investment (net) 6.227
C. Financial account 10.844 D. Net Errors and
Direct investment: Assets -66
Omissions -4.743
Direct investment: Liabilities 4.12
Dire c t Inv e s tm e nt (ne t) 4.054 E. Overall balance 1.505
Portfolio investment: Assets 4
Portfolio investment: Liabilities 559
F. Reserve and
Portfolio Inv e s tm e nt(ne t) 563 related items -1.505
Other Investment: Assets 589 Reserve assets -1.505
Money and deposits 628
Banks 1.212
Credit and loans from IMF 0
Other sectors -584 Exceptional financing 0
Loans
Trade credit and advances
Other accounts receivable/payable -39
Other Investment: Liabilities 5.638
Currency and deposits 1.951
Banks 1.951
Other sectors 0
Loans 3.687
Shorterm 2.056
Disbursements 9.069
Scheduled Amortization -7.013
Medium and long term 1.631
Disbursements 3.624
 I Overview of BOP

01 Definition of the BOP

Main contents
BOP accounting principles: Credit, debit, and double-entry
02 bookkeeping

03 Structure of the BOP

II Accounting balances: surplus and deficit

Before class and
required knowledge

• Read [1] Chapter 13 (397 – 406)

• Read [2] Chapter 5

• Understand the concept of BOP

• Apply in calculation and analysis
• Study BOP of VN and other countries
Overview of BOP
 Main purposes of the BOP
Inform the government of the international position of the
nation

Help the government in its formulation of monetary, fiscal,

and trade policies

Inform banks, firms, and individuals directly or indirectly

involved in international trade and finance
 The balance of payments is a summary
statement in which, in principle, all the
transactions of the residents of a nation
with the residents of all other nations are
recorded during a particular period of
time, usually a calendar year

Definition of BOP
 BOP definition clarification
When?
During a particular period of time
Summary statement
Three main categories:
current account; capital
account; and financial
What are transacted? account
• Exchange of a good, Who are
service, or asset domestic
• Gifts and certain other residents?
transfers
Who involved?
Domestic residents and foreigners
BOP accounting principles

Credits and debits

Double-entry bookkeeping
 Credits and debits
Credit transactions are those that involve Debit transactions are those that involve
the making of payments to foreigners
the receipt of payments from foreigners
.
Debit transactions are entered with a
negative sign in a nation’s BOP
Credit transactions are entered with a
positive sign in a nation’s BOP

Credits Debits
 Credits and debits
Export of goods and services Import of goods and services

Unilateral transfers (gifts) Unilateral transfers or

received from foreigners gifts made to foreigners
receipt of payments from payments to foreigners
foreigners

Credits Debits
 Credits and debits
an increase in foreign an increase in the nation’s
assets in the nation assets abroad
a reduction in the nation’s
a reduction in foreign
assets abroad
assets in the nation

receipt of payments from payments to foreigners

foreigners

Financial Financial
inflows outflows
 Credits and debits
A U.K. resident purchases a U.S. stock ???? a U.S. resident sells a foreign stock

Foreign assets in the United States increase U.S. assets abroad decrease

capital inflow A U.S resident will receive a payment capital inflow

from a U.K resident

credit in the U.S. balance of payments

credits debit
 Credits and debits
the purchase of a U.K. treasury bill by a U.S. ???? the sale of its U.S. subsidiary by a
resident German firm
increases U.S. assets abroad reduces foreign assets in the US

capital outflow A U.S resident will give a payment to capital outflow

foreigners

debit in the U.S. balance of payments

credits debit
 Double-entry bookeeping
Every transaction has two sides

We buy something and we have to pay for

it
Each international transaction is recorded twice, once as a credit
and once as a debit of an equal amount

a U.S. firm exports $500 of goods

to be paid for in three months
 Double-entry bookeeping

a U.S. resident visits London and

spends $200 on hotels, meals,
and so on
 Double-entry bookeeping

the U.S. government gives a U.S. bank

balance of $100 to the government of a
developing nation as part of the U.S. aid
program
 Double-entry bookeeping

a U.S. resident purchases a foreign stock for

$400 and pays for it by increasing foreign
bank balances in the United States
 Double-entry bookeeping

A foreign investor purchases $300 of U.S.

treasury bills and pays by drawing down his
bank balances in the United States by an
equal amount
 Double-entry bookeeping
Credit (+) Debit (-)
• A U.S. firm exports $500 of goods to be Good exports $500
paid for in three months financial outflow $500
• A U.S. resident visits London and      

spends $200 on hotels, meals, and so on

Travel services purchased from foreigners $200
• The U.S. government gives a U.S. bank
Financial inflow $200
balance of $100 to the government of a      
developing nation as part of the U.S. aid Unilateral transfers made $100
program Financial inflow $100

• A U.S. resident purchases a foreign      

stock for $400 and pays for it by
increasing foreign bank balances in the
United States
• A foreign investor purchases $300 of
Financial outflow (the purchase of the foreign
stock by the U.S. resident) $400
Financial inflow (the increase in foreign bank
balances in the U.S.) $400
     

U.S. treasury bills and pays by drawing Financial inflow (the purchase of U.S. treasury
bills by a foreigner) $300
down his bank balances in the United
Financial outflow (the reduction in foreign bank
States by an equal amount balances in the U.S.) $300
 Double-entry bookeeping
Credit (+) Debit (-)
Good exports $500
financial outflow $500
     

Travel services purchased from foreigners $200

Financial inflow $200
     
Unilateral transfers made $100
Financial inflow $100
     
Financial outflow (the purchase of the
foreign stock by the U.S. resident) $400
Financial inflow (the increase in foreign
bank balances in the U.S.) $400
     
Financial inflow (the purchase of U.S.
treasury bills by a foreigner) $300
Financial outflow (the reduction in foreign
bank balances in the U.S.) $300
 QUARTER II YEAR 2021
In million of USD
Standard Data
A. Current Account -4.596
Goods: Exports f.o.b 79.934
Goods: Imports f.o.b 80.288
Goods ( ne t) -354
Services: Exports 891
Services: Imports 4.759
S e rv ic e s (ne t) -3.868

Investment incomes (Primary income): Receipts 269

Government 164
Investment income (Primary income): Payments 4.139 Other sectors 3.46
Inv e s tm e nt inc om e (Prim ary inc om e ) (ne t) -3.87 Scheduled Amortization -1.993
Transfers (Secondary income): Receipts 4.243 Government -462
Transfers (Secondary income): Payments 747
Other sectors -1.531
Trans fe rs (S e c ondary inc om e )(ne t) 3.496
B. Capital Account 0 Trade credit and advances
Capital account: Receipts 0 Other accounts receivable/payable
Capital account: Payments 0 Other Investment (net) 6.227
Ne t Curre nt and Capital Ac c ount -4.596
C. Financial account 10.844
D. Net Errors and
Direct investment: Assets -66 Omissions -4.743
Direct investment: Liabilities 4.12 E. Overall balance 1.505
Dire c t Inv e s tm e nt (ne t) 4.054
Portfolio investment: Assets 4 F. Reserve and
Portfolio investment: Liabilities 559 related items -1.505
Portfolio Inv e s tm e nt(ne t) 563 Reserve assets -1.505
Other Investment: Assets 589
Credit and loans from IMF 0
Money and deposits 628
Banks 1.212 Exceptional financing 0
Other sectors -584
Loans
Trade credit and advances
Other accounts receivable/payable -39
Other Investment: Liabilities 5.638
Currency and deposits 1.951
Banks 1.951
Other sectors 0
Loans 3.687
Shorterm 2.056
Disbursements 9.069
Scheduled Amortization -7.013
Medium and long term 1.631
Disbursements 3.624
Current account
Export (1)
Import (2)
Net unilateral current transfers (3) Structure of BOP
Capital account (4)
Financial account
A country’s assets held abroad, excluding financial
derivatives (5)
Foreign assets held by a country, excluding financial
derivatives (6)
Financial derivatives, net (7)
Balance on financial account
[(5) +(6)+(7)]
Statistical discrepancy
[Sum of (1) through (7) with sign reversed]
Summary of U.S. International Transactions for 2011
(billions of dollars)
Structure of the BOP
 - The balance on goods trade:
Current account - Net debit balance on goods trade
- Net credit balance on services
- Net debit balance on goods and services
- Net surplus balance on investment income
- Net debit balance on goods, services, and
incomes
 Current account

The current account lumps together all sales and purchases

of currently produced goods and services, investment
incomes, and unilateral transfers

An CA provides the link between the nation’s international

transactions and its national income

A current account surplus stimulates domestic production and

income, while a current account deficit dampens domestic
production and income
 Capital account

• This includes, for the most part, debt forgiveness and goods and financial assets that
migrants take with them as they enter or leave the country.
• Certain other activities resulting in transfers of wealth between countries are
recorded in the capital account
• These international asset movements differ from those recorded in the financial
account
• For the most part they result from nonmarket activities or represent the acquisition
or disposal of nonproduced, nonfinancial, and possibly intangible assets (such as
copyrights and trademarks)
The financial account shows the
change in a country-owned assets
abroad and foreign-owned assets in
the country.

Financial account
 Financial account
• A U.S. resident increasing his holding of a foreign financial asset (a stock, a bond, or an
IOU from a loan) is a debit. The U.S. individual is making a payment now (or extending a
loan now) to the foreigner, so funds are flowing out of the United States now (negative
item).
• A foreign resident increasing her holding of a U.S. financial asset (a stock, a bond, or an
IOU from a loan) is a credit. The U.S. seller (or borrower) is receiving pay- ment now (or
getting a loan now) from the foreigner, so funds are flowing into the United States now (a
positive item).
• A U.S. resident decreasing her holding of a foreign financial asset (a stock, a bond, or an
IOU from a loan) is a credit. The U.S. individual is receiving a payment now (or receiving
repayment of a previous loan) from the foreigner, so funds are flowing into the United
States now (positive item).
• A foreign resident decreasing his holding of a U.S. financial asset (a stock, a bond, or an
IOU from a loan) is a debit. The U.S. buyer (or borrower) is making a pay- ment now (or
repaying a previous loan) to the foreigner, so funds are flowing out of the United States
now (a negative item).
 Official International Reserves
• Official international reserves keeps track of changes in official holdings of international
reserves.
• Official international reserve assets are money-like assets that are held by governments
and that are recognized by governments as fully acceptable for payments between them.
• The term official refers to assets held by monetary-type officials, not all government. The
purpose of this distinction is to focus on the monetary task of regulating currency values, to
which we return in discussing the overall surplus or deficit.

Gold Foreign exchange assets

19th century 20th century Now

 Statistical
Discrepancy

•If the flows on the two sides

of every transaction were
correctly recorded, there WHY???
would not be any statistical
discrepancy.
 Statistical Discrepancy
• The statistical discrepancy for the U.S. balance of payments for 2013 was a
credit of $28 billion, meaning that the credit items for the United States were
less fully measured than its debit items.
• The accountants add the statistical discrepancy to make the accounts balance
and to warn us that something was missed.
• It is the net result of errors and omissions on both the credit and debit sides. In
truth, more than $28 billion of credits were missed, but some were offset by
failure to measure all the debits.

How do the measurement errors arise? Which items appear to be most seriously
undermeasured?
Accounting balances:
surplus and deficit
What is the surpus?

What is the deficit?

THE MACRO MEANING OF THE CURRENT ACCOUNT
BALANCE

We have illustrated these meanings using the U.S. current account deficit.
What would they mean for a country with a current account surplus?
• The country has positive net foreign investment (that is, the country is
acting as a net lender to or investor in the rest of the world).
• The country is saving more than it is investing domestically.
• The country is producing more (and has more income from this
production) than it is spending on goods and services.
1. How did the US finance its current account deficit in 2011?
2. How was the US account deficit link to its national saving and domestic
investment in 2011?
3. Can you interpret the 2011’s U.S. current account deficit refers to its
domestic production, income, and expenditure?
 B= CA + FA B + OR = 0
B: the official settlements balance FA: the financial account balance
OR: the net flows of official reserve assets

THE MACRO MEANING OF THE OVERALL BALANCE

• If B is in surplus, it equals an accumulation of official reserve assets by
the country or a decrease in foreign official reserve holdings of the
country’s assets (that is, a debit in the official reserves account).
• If the overall balance is in deficit, it equals a decrease in the country’s
holdings of official reserve assets or an accumulation of foreign official
reserve holdings of the country’s assets (that is, a credit in the official
reserves account).
• In some situations such changes in official reserve holdings can be
specifically desired by the monetary authorities.
 B= CA + FA B + OR = 0
B: the official settlements balance FA: the financial account balance
OR: the net flows of official reserve assets

THE MACRO MEANING OF THE OVERALL BALANCE

• If B is in surplus, it equals an accumulation of official reserve assets by
the country or a decrease in foreign official reserve holdings of the
country’s assets (that is, a debit in the official reserves account).
• If the overall balance is in deficit, it equals a decrease in the country’s
holdings of official reserve assets or an accumulation of foreign official
reserve holdings of the country’s assets (that is, a credit in the official
reserves account).
• In some situations such changes in official reserve holdings can be
specifically desired by the monetary authorities.
 B= CA + FA B + OR = 0
B: the official settlements balance FA: the financial account balance
OR: the net flows of official reserve assets

THE INTERNATIONAL INVESTMENT POSITION

• If B is in surplus, it equals an accumulation of official reserve assets by
the country or a decrease in foreign official reserve holdings of the
country’s assets (that is, a debit in the official reserves account).
• If the overall balance is in deficit, it equals a decrease in the country’s
holdings of official reserve assets or an accumulation of foreign official
reserve holdings of the country’s assets (that is, a credit in the official
reserves account).
• In some situations such changes in official reserve holdings can be
specifically desired by the monetary authorities.
BOP database
Where can you find BOP data?