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The report summarizes the structure and operation of a balance of payments model for the State Bank to improve its institutional capabilities in applied macroeconomic policy modeling. The model provides simulation capabilities under a fixed exchange rate system that is targeted to the needs of the monetary and fiscal sectors of Viet Nam. The resulting model allows for considerable flexibility in its usage for forecasting, and in the selection of the policy mix and instruments for the targets of a program. In its present form, it provides a framework for making rational and consistent predictions about Viet Nam's overall balance of payments, and it provides a mechanism to identify the equilibrium exchange rate for the current and capital accounts. Asian Development Bank (ADB) Technical Assistance Study (30 pages). June 1998.