The Financial Storms in Vietnam’s Transition Economy: A Reasoning on the 1991-2008 Period

Pham Minh Chinh and Vuong Quan Hoang, KINH TE VIET NAM - THANG TRAM VA DOT PHA, Chapter 4, Knowledge Publishing House, December 2009 (reprint 2010)

29 Pages Posted: 6 Aug 2009 Last revised: 15 May 2010

Quan Hoang Vuong

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management; FPT/FSB; Vuong & Associates

Date Written: August 19, 2008

Abstract

This study focuses on those substantial changes that characterize the shift of Vietnam’s macroeconomic structures and evolution of micro - structural interaction over an important period of 1991 - 2008. The results show that these events are completely distinct in terms of (i) Economic nature; (ii) Scale and depth of changes; (iii) Start and end results; and, (iv) Requirement for macroeconomic decisions.The study rejected a suspicion of similarity between the contagion of the Asian financial crisis in 1997-98 and economic chaos in the first half of 2008 (starting from late 2007). The depth, economic settings of, and interconnection between macro choices and micro decisions have all grown up significantly, partly due to a much deeper level of integration of Vietnam into the world’s economy. On the one hand, this phenomenon gives rise to efficiency of macro level policies because the consideration of micro-structural factors within the framework has definitely become increasingly critical. On the other hand, this is a unique opportunity for the macroeconomic mechanism of Vietnam to improve vastly, given the context in which the national economy entered an ever-changing period under pressures of globalization and reintegration.The authors hope to also open up paths for further empirical verifications and to stress on the fact that macro policies will have, from now on, to be decided in line with changing micro - settings, which specify a market economy and decide the degree of success of any macroeconomic choices.

Keywords: Financial system, inflation, economic growth, interest rate, exchange rate

JEL Classification: G10, G18, E22, E31, E44

Suggested Citation

Vuong, Quan Hoang, The Financial Storms in Vietnam’s Transition Economy: A Reasoning on the 1991-2008 Period (August 19, 2008). Pham Minh Chinh and Vuong Quan Hoang, KINH TE VIET NAM - THANG TRAM VA DOT PHA, Chapter 4, Knowledge Publishing House, December 2009 (reprint 2010). Available at SSRN: https://ssrn.com/abstract=1444282

Quan Hoang Vuong (Contact Author)

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management ( email )

ULB CP 145/01
21 Ave. F.D. Roosevelt
Brussels 1050
Belgium
+32-2-6504864 (Phone)
+32-2-6504188 (Fax)

HOME PAGE: http://www.solvay.edu/profile/prof-dr-vuong-quan-hoang

FPT/FSB ( email )

VAS Building C
My Dinh 1, Tu Liem District
Hanoi, 100000
Vietnam

Vuong & Associates ( email )

3/161 Thinh Quang
Dong Da District
Hanoi, Hanoi
Vietnam
+84-4-37738654 (Phone)
+84-4-37738653 (Fax)

HOME PAGE: http://www.vuongassociates.com

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