OVERVIEW OF VIETNAM’S MACROECONOMY

Le Hanh Thao – MA3N0208

Vietnam

Hanoi - Vietnam

Macroeconomic factors affect on interest rate

Economic growth Expectation on infaltion Fiscal balance Monetary policy

Macroeconomic stability in Vietnam

Four most pressing issues recently : Inflation Exchange rate management Trade deficits Budget deficits

Overview of Vietnam’s economyEconomic Growth and Inflation rate

Vietnam Economic Growth and Inflation, 1995-2009

Overview of Vietnam’s economyEconomic Growth and Inflation rate

Causes of inflation issues: Problems in the foreign exchange

markets The recent global economic crisis Loose monetary policy Rigid exchange rate management Consumer prices driven up

Overview of Vietnam’s economyBudget Deficits

Revenues - Expenditures and Budget Deficits

Overview of Vietnam’s economyPublic Debts

Public Debt and External Debt

Overview of Vietnam’s economyAccount Deficit and Exchange Rate

Current Account Deficit and Foreign Exchange Reserves

Overview of Vietnam’s economyExchange Rate

Real and Nominal Exchange Rate VND/USD(base year=2000)

The macroeconomic characteristics in Vietnam

Growth rates are high and heavily depends on investment expansion.

The economy is becoming stronger fluctuation of inflation

The budget is dual deficit Current account balance remains in deficit. Capital flows tend to be less stable Domestic currency tends to appreciate with the

flexibility on the USD.