TAILIEUCHUNG - The economic growth and policy implications in Vietnam

After a long period of high and stable economic growth, the Vietnam’s economy is experiencing difficult time that the inflation is considered as the main reason for. To solve the situation, the Vietnam’s government has continuously introduced series of aggregate demand management policies relating restraining the inflation or boosting the economic growth. This paper uses the quantitative methodology to analyze the relationship between the growth and the inflation in Vietnam and the input - output system by W. Leontief to analyze the periodical structure of the economy. Hence it would be possible to identify the cause for the economic growth and raise some implications to the policymakers. | Journal of Applied Finance Banking vol. 3 no. 5 2013 237-250 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2013 The Economic Growth and Policy Implications in Vietnam Bui Trinh1 Nguyen Viet Phong2 and Binh Phan3 Abstract After a long period of high and stable economic growth the Vietnam s economy is experiencing difficult time that the inflation is considered as the main reason for. To solve the situation the Vietnam s government has continuously introduced series of aggregate demand management policies relating restraining the inflation or boosting the economic growth. This paper uses the quantitative methodology to analyze the relationship between the growth and the inflation in Vietnam and the input - output system by W. Leontief to analyze the periodical structure of the economy. Hence it would be possible to identify the cause for the economic growth and raise some implications to the policymakers. JEL classification numbers C13 C32 C51 G10. Keywords Economic growth inflation economic structure consumption price index CPI GDP input-output system. 1 Introduction At the end of the 80s of the twentieth century when the government conducted Doi Moi reforms Vietnam made a shift from highly centralized planned mechanism to the socialist-oriented market economy. Thanks to such transformation the economy has gained significant achievements particularly the high growth and improved living standards. Especially many reforms during the period of 2000 - 2006 in the spirit of supply side management such as the allowance for direct export the passage of the Vietnam Business Law 2000 the release of barriers on the establishment of enterprises the privatization of state owned enterprises etc. During the period of 2000 - 2006 the average economic growth rate was about and the inflation was nearly 5 . From 2007 to 2012 they changed to and 13 respectively. Corresponding author private consultant. 2Vietnam General statistic Office. 3Deposit Insurance of .

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