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 economy Economic Growth and Inflation rate Vietnam Economic Growth and Inflation,

Overview of Vietnam’s economy Economic 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 economy Budget Deficits Revenues - Expenditures and Budget Deficits

Overview of Vietnam’s economy Public Debts Public Debt and External Debt

Overview of Vietnam’s economy Account Deficit and Exchange Rate Current Account Deficit and Foreign Exchange Reserves

Overview of Vietnam’s economy Exchange 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.